A special rule applies to a payment or distribution received from a SIMPLE IRA during the two-year period beginning on the date on which the individual first participated in any SIMPLE IRA plan maintained by the individual's employer (the two year period). Under this rule the penalty tax on early distribuitons is increased from 10% to 25%.
It is my understanding the two-year period begins on the first day on which contributions made by the individual's employer are deposited in the individuals's SIMPLE IRA.
Does that statement mean your two year period is counted on the first dollar contributed or the last dollar contributed?