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IRS.gov Website
Publication 590
taxmap/pubs/p590-022.htm#en_us_publink1000231135

When Can You Withdraw
or Use Assets?(p79)

For Use in Tax Year 2013
rule
Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. These rules are discussed in chapter 1.
Your employer cannot restrict you from taking distributions from a SIMPLE IRA.
taxmap/pubs/p590-022.htm#en_us_publink1000231136

Are Distributions Taxable?(p79)

For Use in Tax Year 2013
rule
Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. See Additional Tax on Early Distributions, later.
taxmap/pubs/p590-022.htm#en_us_publink1000231138

Rollovers and Transfers Exception(p79)

For Use in Tax Year 2013
rule
Generally, rollovers and trustee-to-trustee transfers are not taxable distributions.
taxmap/pubs/p590-022.htm#en_us_publink1000231139

Two-year rule.(p79)

For Use in Tax Year 2013
rule
To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA.
After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan).
taxmap/pubs/p590-022.htm#en_us_publink1000231140

Additional Tax on Early Distributions(p80)

For Use in Tax Year 2013
rule
The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%.
If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed.