early dist from 403b (TSA)
Client is 58 yrs old and retired school teacher. He has $28k in his TSA. is there any ruling where he can take out $10,000 without the 10% penatly tax?
Thank you,
Doug
Client is 58 yrs old and retired school teacher. He has $28k in his TSA. is there any ruling where he can take out $10,000 without the 10% penatly tax?
Thank you,
Doug
Permalink Submitted by Al Fry on Wed, 2009-02-18 16:51
When did he retire?
Permalink Submitted by Alan Spross on Sat, 2009-03-07 04:27
Since he separated from service at or after age 55, any distributions taken directly from the plan will be penalty free, just subject to ordinary tax rates. He will have to check with the plan to see if they allow partial distributions. If not, he can request a direct rollover of 18,000 to an IRA and ask for the other 10,000 to be distributed to him. There will be 20% mandatory tax withheld on the 10,000 portion, but no early withdrawal penalty.