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.
Cashing Out Your 401k. The tax implications of cashing out your 401k before the 59 Â½ mark could be more severe, plus they are accompanied by penalties. Taxes will be levied on the entire amount, so that will dramatically impact your gross taxable income for that year.If you were making $35,000 and you cash out an account that has $100,000 in it, youâd be paying 28% on roughly $44,350, which would result in taxes of $12,418 for that section alone.ashing Out Your 401k. The tax implications of cashing out your 401k before the 59 Â½ mark could be more severe, plus they are accompanied by penalties. Taxes will be levied on the entire amount, so that will dramatically impact your gross taxable income for that year.