He was also hit with a $2 million fine and ordered to forfeit another $365,000.
Steinberg, once of Steven Cohen's SAC Capital Advisors, asked for a two-year sentence.
Prosecutors accused Steinberg of trading on illegal tips about Dell Inc and NvidiaCorp passed to him by an SAC analyst, who admitted to swapping confidential information among a group of analysts at other hedge funds.
SAC has since been renamed Point72 Asset Management.
Read More Steinberg's other problem: Legal fees
-Reporting by CNBC's Jim Forkin. Reuters contributed to this report.