50% seems very very high. i have cashed out ira's and 401k's and the
tax penalty is only 15%. of course, you also pay taxes on the
withdrawn amount in addition to the penalty. (duh - i guess that
goes without saying). isnt the trs system similar to a 401k?

On 11/03/09, 4thintx wrote:
> I know this sounds totally counterintuitive, but the IRS website
> can e pretty easy to manuver. Try going on there and looking
> into early retirement withdrawl or retirement cash out.
>
> Unless there is a stipulaton for your hardship, I believe you
> are expected to repay (plus taxes) within a year. The tax
> penalties are about 50%. They don't always make that clear at
> the beginning, so be safe and set aside half for uncle sam.

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