Backpacker
Recycles dryer sheets
I was sitting in on a meeting with my companies 401k administrator, we may be making some changes and the HR lady asked me to sit in.
In the course of conversation and reading over the 401k plan details I read that if you work until age 55 and retire you can get $ out of 401k's with out paying the IRS the 10% penalty (blood money). I must admit this caught me by suprise; I had always heard that you had to be 59 & 1/2.
They claim if the early distribution happens when my employment ends and I am 55 or older then no 10% penalty. If my employement ends at 54 or less then I must wait until 59 & 1/2 to avoid the penalty.
I still need to find out if I can take a partial w/d or if I need to take it all; obviously if I had to take it all I wouldn't want to get taxed on full amount all in one year.
In the course of conversation and reading over the 401k plan details I read that if you work until age 55 and retire you can get $ out of 401k's with out paying the IRS the 10% penalty (blood money). I must admit this caught me by suprise; I had always heard that you had to be 59 & 1/2.
They claim if the early distribution happens when my employment ends and I am 55 or older then no 10% penalty. If my employement ends at 54 or less then I must wait until 59 & 1/2 to avoid the penalty.
I still need to find out if I can take a partial w/d or if I need to take it all; obviously if I had to take it all I wouldn't want to get taxed on full amount all in one year.