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.
Penalties and Paperwork. Falling short of your RMD triggers a 50 percent tax penalty on what you didn't take out. If, for example, your minimum withdrawal this year should be $2,800 and you only take out $1,800, you pay a $500 penalty in addition to the regular income tax on withdrawals. In January, your bank should send you a 5498 form with your RMD for the year ahead.