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.
Additionally, you can cash out your 401(k) and pay the 10 percent penalty if you need funds for certain financial hardships and have no other source of funds.et me say this again: As tempting as it may be to cash out an old 401(k), itâs a poor financial decision. 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.