Originally Posted by abbvie
Same here. I am thinking of pulling the trigger at 55.
Here's my story:
Age 48, married with 4 children, sole provider. Currently have 250K in 401K/IRA. previous co pension @ 55 is project to 500/month. putting away about 40K/year in 401K/IRA thanks to the house being paid off this year. college for childrens is taken care of from birth onset of each child 529. I am hoping to garnest aroung 600K by 55 and trying to still learn the 401K/IRA rules and regs. would love to get some advice for tapping into the 401K/IRA as a gap filler until hitting SS eligibilty. Been haulin since stepping out of college in 1986 and now having a taste of ER life.
Your employer's 401(k) may allow penalty free withdrawals at 55, you may want to check on that first. However, even if they don't or you don't want to approach your employer yet, you can always do a 401(k) rollover to an IRA when you quit (or retire) that will not trigger any taxes.
Once in an IRA you can make penalty free withdrawals using Rule 72(t).
If you Google Rule 72(t) you'll see many hits, but a summary of it is here,
Rule 72(t) Definition | Investopedia
Definition of 'Rule 72(t)'
An Internal Revenue Service (IRS) rule that allows for penalty-free withdrawals from an IRA account. The rule requires that, in order for the IRA owner to take penalty-free early withdrawals, he or she must take at least five "substantially equal periodic payments" (SEPPs). The amount depends on the IRA owner's life expectancy calculated with various IRS-approved methods.