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part time work/tax 401k
Old 07-04-2006, 09:54 PM   #1
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part time work/tax 401k

I am 55, may retire next year, fidelity says I can pull from my 401k because I would be retired. Can I work part time and still pull from the 401k
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Re: part time work/tax 401k
Old 07-04-2006, 10:59 PM   #2
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Re: part time work/tax 401k

Yes, google 72(t) withdrawals. We've also had a number of threads about it.
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Re: part time work/tax 401k
Old 07-04-2006, 11:37 PM   #3
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Re: part time work/tax 401k

Isn't the 72t for IRA's, I was going to leave the money in the 401 k
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Re: part time work/tax 401k
Old 07-04-2006, 11:48 PM   #4
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Re: part time work/tax 401k

You probably should ask Fidelity about this. The details are specific to your particular 401K plan but I have the impression that often corporate 401K plans are rather inflexible about withdrawals and often it is an all-or-nothing choice if you are withdrawing funds early (before age 70.5).
That would effectively mean your choice would be rolling over into an IRA but perhaps you might get lucky with your particular plan and have other choices.
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Re: part time work/tax 401k
Old 07-05-2006, 07:23 AM   #5
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Re: part time work/tax 401k

Quote:
Originally Posted by kaneohe
You probably should ask Fidelity about this.* *The details are specific to your particular 401K plan
Just to confirm, this is correct.* I was able to move about 35% of my 401K money at Fidelity to a roll-over IRA.* My wife (who also is with Fidelity, with another employer) could not move anything.*

It all depends on the company plan...

- Ron
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Re: part time work/tax 401k
Old 07-05-2006, 07:41 AM   #6
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Re: part time work/tax 401k

Check with your 401k plan provider / Fidelity (sounds like you already did).
Since you retired at age 55, you, most likely, will be able to make withdrawals from your 401k. You should be able to make equal monthly withdrawals, but check on it first. And, of course, you can work part-time and still pull out money.
A 72(t) should not be required but depends on your plan, so , once again, double check.
.
As far as "all or nothing", you may not be able to make a one time withdrawal of part of the money. They may tell you to withdraw all of it, or may take out equal monthly withdrawals.
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Re: part time work/tax 401k
Old 07-05-2006, 09:44 AM   #7
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Re: part time work/tax 401k

Quote:
Originally Posted by Ron'Da
Just to confirm, this is correct.* I was able to move about 35% of my 401K money at Fidelity to a roll-over IRA.* My wife (who also is with Fidelity, with another employer) could not move anything.*

It all depends on the company plan...

- Ron
Just me without research... but I think that you can roll over from any plan once you no longer work with the company.... they can not keep your money if you do not want them to.. Maybe the plan has an all or nothing clause, but I do not see how a company can keep your money when the federal laws say you can move it.
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Re: part time work/tax 401k
Old 07-05-2006, 09:54 AM   #8
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Re: part time work/tax 401k

Quote:
Originally Posted by kirkj55
I am 55, may retire next year, fidelity says I can pull from my 401k because I would be retired. Can I work part time and still pull from the 401k
Would you be working part time for a different employer?*
Provided you separate from service from your employer where you have the 401k in or after the year you turn 55, you can make penalty free withdrawals from the 401k. See page 17 of this publication http://www.irs.gov/pub/irs-pdf/p560.pdf
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Re: part time work/tax 401k
Old 07-05-2006, 11:41 PM   #9
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Re: part time work/tax 401k

Quote:
Originally Posted by Martha
Would you be working part time for a different employer?*
Provided you separate from service from your employer where you have the 401k in or after the year you turn 55, you can make penalty free withdrawals from the 401k. See page 17 of this publication http://www.irs.gov/pub/irs-pdf/p560.pdf
Yes I would just work part time with another company to keep busy and make a little extra, I presently work shift work ( 12 hour shifts) that change from days to nights ever 3 or 4 days and I am tired of it,
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Re: part time work/tax 401k
Old 07-06-2006, 08:31 AM   #10
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Re: part time work/tax 401k

Then you should be ok taking withdrawals from your 401k.
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