I retired at 58 years. Do I have to wait to age 59-1/2 to access the funds in my 457 w/o penalty?

Question

I was informed by CalPERS Retirement Systems that I must wait until I am 59.5 years of age to withdraw funds from my 457 plan or the money will be taxed at 38%. But I just read at another website that there is no penalty for withdrawal before that age. Which is correct?

Answer 1

CalPERS is correct. It's only for emergency reasons or using the money to pay for housing that is except from 401(k) style tax penalties.