This may sound a fanciful scenario, yet recent events across Europe â including the looming independence referendum in Scotland â tell a very different story. Six days ago, the people of Spainâs most prosperous region, Catalonia, voted overwhelmingly for parties favouring the breaking away from Spanish rule.
1 If you are 55 or older and retired, you can withdraw from your TSP without being charged the 10% tax penalty (which is normally tacked onto early withdrawals) in addition to regular income taxes.
Thatâs because, in the eyes of the IRS, cashing out your 401(k) before you are 59 Â½ is considered an early withdrawal and is subject to a 10 percent penalty on top of regular income taxes.In most cases, your plan administrator will mail you a check for 70 percent of your 401(k) balance.ashing out early will cost you huge in penalties and lost growth over the next few decades. Itâs a basic but all-too common question posed on financial blogs like this one: âI just left my job. I have like $1,000 sitting in my old 401(k) and Iâm short on cash.