Malakito wrote...

"I'm not sure if this is true if you follow the "separate from employer in the year you turn 55 route".

There is a slight loop hole in the "withdrawal from retirement accounts" law.

If you have a 401K at work and you retire from your company at 55 years of age or older you can take all or part of your 401K stash without any penality.

You do have to pay the tax, but no 10% penalty and that might work out nicely if timed properly.

boont