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Penalty for Retiring at 55????
Old 04-16-2010, 08:27 AM   #1
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Penalty for Retiring at 55????

My company offers full retirement at age 55 with 30 years of service (profit sharing + lump sum pension + retiree health insurance). Will I have to pay a tax penalty for withdrawing retirement funds prior to age 59-1/2?
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Old 04-16-2010, 08:46 AM   #2
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Here's an article on the subject. It looks like since you are at least 55, you can do a rollover without paying any taxes (unless you do withdrawls):

Kiplinger.com
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Old 04-16-2010, 08:48 AM   #3
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For the most part yes, you would owe penalties unless it's a 401K (which can be tapped without penalty at 55 for retirees). Rolling over into an IRA would avoid the tax penalties but you'd have to wait until 59 1/2 unless you used 72t.
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Old 04-16-2010, 09:51 PM   #4
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Quote:
Originally Posted by rdjrn View Post
My company offers full retirement at age 55 with 30 years of service (profit sharing + lump sum pension + retiree health insurance). Will I have to pay a tax penalty for withdrawing retirement funds prior to age 59-1/2?
I'm not sure how this applies to your situation and what you precisely mean by "retirement funds" but this is worth a read:

Retire Early: Can I withdraw money from my IRA before age 59 ?
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Old 04-17-2010, 06:00 AM   #5
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Is it a 401k or a 457b. I was a NY State employee and had a 457b. You can withdraw from that after leaving your job without penalty.
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