I retired this year at the age of 55. I have heard that the rule of 55 says I can withdraw any 401k or Ira money I want. Does this mean anytime from now on or just this year? And if I want to do this now or later how do I show this rule applies.
sooner said:I retired this year at the age of 55. I have heard that the rule of 55 says I can withdraw any 401k or Ira money I want. Does this mean anytime from now on or just this year? And if I want to do this now or later how do I show this rule applies.
REWahoo! said:The IRS allows you to withdraw funds penalty free from a 401k, not an IRA.
retire@40 said:What about Sec. 72(t)?
bennevis said:Retiring at age 55 allows you to take periodic equal payments from your 401k with no penalty.
What do you mean periodic equal payments? Can I Just take an amount once a year. Can I change that amount?
sooner said:Yes you can, to both your questions. Again, remember that you have to terminate your employment in or after the year you turn 55 for this exception to the penalty. See IRS publication 575:bennevis said:Retiring at age 55 allows you to take periodic equal payments from your 401k with no penalty.
What do you mean periodic equal payments? Can I Just take an amount once a year. Can I change that amount?
http://www.irs.gov/pub/irs-pdf/p575.pdf
Coach