Yes, I don't believe that it adds up to 50%. According to information
I found online from TRS, unless you roll the account over to an IRA or
other qualifying account, they take 20% off the top for federal tax,
plus a 10% penalty for early withdrawal. That adds up to 30%, so I am
not sure where the 50% figure came from.

On 11/04/09, hs math wrote:
> 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 withdrawn amount in addition to the penalty.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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