Having turned 55 and hoping to retire before 59 1/2 I am very interested in the "rule of 55" but I'm seeing conflicting info about it.
I originally thought that if you leave your job at 55 or later, the IRS allows you to take any amount out of your 401(k) penalty-free.
I the hear that your plan may not allow you to take any amount, in which case you may need to cash out the whole thing (and pay taxes on the corresponding income in one year)
When I asked my employer they told me the plan doesn't support the rule of 55 and I can ot withdraw any money.
Is it truly plan dependent?
I originally thought that if you leave your job at 55 or later, the IRS allows you to take any amount out of your 401(k) penalty-free.
I the hear that your plan may not allow you to take any amount, in which case you may need to cash out the whole thing (and pay taxes on the corresponding income in one year)
When I asked my employer they told me the plan doesn't support the rule of 55 and I can ot withdraw any money.
Is it truly plan dependent?
Statistics: Posted by Raspberry-503 — Sun Mar 17, 2024 12:32 am — Replies 4 — Views 595
