FDX OSP account withdrawals
I'm 50 years old and considering withdrawing some funds from my after-tax retirement account (formerly known as the optional savings plan, or OSP). The Pilot Benefit Book states that a "10% additional excise tax on early withdrawals may apply."
Does anyone have any experience with this? Since the contributions are deposited into this account on an after tax basis it seems to me that you could withdraw any amount and only have to pay taxes on the earnings. I'm just trying to figure out if there is an additional penalty involved as well.
If there is an additional tax penalty on OSP withdrawals, then what is the advantage of contributing to this plan versus simply contributing directly into another taxable mutual fund of your choice (outside the plan) where no such withdrawal penalty is imposed?