Jimonlimon
Recycles dryer sheets
- Joined
- Dec 12, 2022
- Messages
- 141
I retired at the end of 2023 at age 58-1/2. I took some money out of my (former) government employer sponsored pre-tax 401k using the so-called "rule of 55".
Now I have an opportunity to do some part-time work for the same former employer which is appealing- it's the work I always loved before 90% of my time was doing manager things. I would be paid my full former rate but with no deductions other than FICA and taxes the money would be a nice perk. Due to our kid's college scholarship, it is important that we limit our taxable income this year, so if I were to do this work I would put almost all of the income into the 401k. This is allowed by the plan.
Question: Going back to work and/or making contributions to the 401k would I run into an early withdrawal penalty for the money I already took out? Basically is one allowed to retire from an employer, draw using the rule of 55, then go back to work part time for the same employer?
I'll turn 59-1/2 in November so after that point any 401k draws wouldn't be "early".
Now I have an opportunity to do some part-time work for the same former employer which is appealing- it's the work I always loved before 90% of my time was doing manager things. I would be paid my full former rate but with no deductions other than FICA and taxes the money would be a nice perk. Due to our kid's college scholarship, it is important that we limit our taxable income this year, so if I were to do this work I would put almost all of the income into the 401k. This is allowed by the plan.
Question: Going back to work and/or making contributions to the 401k would I run into an early withdrawal penalty for the money I already took out? Basically is one allowed to retire from an employer, draw using the rule of 55, then go back to work part time for the same employer?
I'll turn 59-1/2 in November so after that point any 401k draws wouldn't be "early".