401K Rollover question & Accessing it at 55 yrs old penalty free

[cyber888]

Here's a question to the tax savvy:

I quit my other job at 52 years old, and have a 401K balance there of about $400K. I'm planning to roll it over to my new 401K in my new job I started this January.

My question is: If I quit my new job after the age of 55 years old, will I be able to withdraw any amount of that $400K rollover without paying the 10% penalty ?

I understand that once you quite your job after the age of 55 years old, you do not pay the 10% penalty for 401Ks (but not for IRAs). Does that apply to the 401k rollover portion from previous jobs as well

Thanks in advance.

[Z3Dreamer]

This website says "Yes" to your question.

"A workaround could be to consolidate your retirement account money into your employer’s plan, terminate after 55, and then take withdrawals from that plan."

https://thefinancebuff.com/age-55-no...401k-plan.html

[cyber888]

Nice !

Quote:

Originally Posted by Z3Dreamer This website says "Yes" to your question. "A workaround could be to consolidate your retirement account money into your employer’s plan, terminate after 55, and then take withdrawals from that plan." https://thefinancebuff.com/age-55-no...401k-plan.html

[swakyaby]

On a side note, DH worked at a Fortune 500 company that had a 5 year vesting rule. The way I understood it, if he quit less than working 5 years, any money the company matched in his 401k would be forfeited. Does your company have any similar conditions?

[rodi]

You'll want to make sure (if you haven't already) that the new company's 401k allows for withdrawals after age 55, but before age 59.5. Not all do. It will be in the plan summary documents.

[cyber888]

For my new job, yes - the vesting in 5 years.
But all my contributions are 100% vested immediately, of course.

Quote:

Originally Posted by swakyaby On a side note, DH worked at a Fortune 500 company that had a 5 year vesting rule. The way I understood it, if he quit less than working 5 years, any money the company matched in his 401k would be forfeited. Does your company have any similar conditions?

[cyber888]

Yes, I did talk to the administrator of my 401K.

Quote:

Originally Posted by rodi You'll want to make sure (if you haven't already) that the new company's 401k allows for withdrawals after age 55, but before age 59.5. Not all do. It will be in the plan summary documents.