Which is true regarding Simple IRA's? Question 24 options: Distributions taken from a SIMPLE IRA before age 59 are subject to an early withdrawal penalty of 10% when withdrawn during the two-year holding period. Distributions taken from a SIMPLE IRA before age 59 are subject to an early withdrawal penalty of 25% when withdrawn during the two-year holding period. Loans can be taken from a SIMPLE IRA. Can be used for companies under 1000 employees