Originally Posted by ssdsco
That's what I thought but I read somewhere that if you fully retire at or after age 55 you don't need to use 72t for penalty free withdrawals. I quess that's only if your employer allows 401k withdrawals which mine definately doesn't.
Do you know if I can do an annual 72t withdrawal for 2007 in December and do the 2008 withdrawal in January ?
72(t) can be complicated beasts, with harsh penalties for those who screw up. The best source of information is Welcome to 72t on the Net
. At a minimum you'll want to fork over the $55-$75 for the 150 page report. (Great for curing sleepless nights also) or go to your friendly CPA who has experience with 72(t). This is all an important disclaimer to answer your question yes you can take money for 2007 in Dec and 2008 in Jan.
Now having said that I'd invest a bit of energy in convincing your old company to change the plan to allow withdrawal for employees over 55. Assuming you still have friends in reasonably high place at the old place tell them it is big benefit to their employees to allow such a change, and shouldn't cost them much money.