Re: Early withdrawal tax penalty
ok, I decided to contribute my 2 cents from the peanut gallery. Looking at the first pub text vs the second pub's text on the subject, I think the first pub's text is written much more clearly. As written, it reads different to me than the text in the second pub, which can be read 2 different ways, one of which matches the first pub text, the second way matches what razorcat says. Here, for purposes of direct comparison-you decide. My recommendation is that you verify with another counselor. they may or may not give you the same answer as the first, depending on how they read each of the pubs. I'd have them read both before giving you advice. reading comprehension is a tricky thing when things are written in ways that can be read more than one way.
From page 14 of the first pub, top of second column: "However, this additional tax doesn't apply in certain situations, including any of the following. You receive the distribution (AND separate from government service during or after the calendar year in which you reach age 55)." My emphases and grammar indicators added to both.
From page 7 of the second pub, "The additional 10% tax generally does not apply to payments that are paid (after you separate from service during or after the year you reach age 55.)"
"life can only be understood backwards, but it must be lived forwards" - soren kierkegaard
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