IRAs also have an early withdrawal penalty of 10% for any money taken out when you are younger than 59½. However, if you retire at age 55 or older, TSPs will waive the 10% penalty.17 Even better, if you qualify underFederal Employees Retirement System (FERS)special provisions, this...
There is no one solution. If your 401k/IRA amounts are low you can just leave them alone. If they are very high pulling them out even at a 25% tax might make sense for you. The key is to be aware of this looming required minimum withdrawal hit so you can take it on your own t...