So I had this thought this morning. Went looking on the internet and did not see what I was looking for. Maybe someone here in the forum knows.
So… my goal is to retire at 55. And to avoid penalties where I can for early withdrawals. I should have enough personal contributions in my Roth 401k at my current employer, that when I retire, I can move that money over to my Roth IRA, and combine that with my personal contributions there, to easily have enough to make it to 59.5 when all the penalty “chains” come off.
But then I got to thinking, I actually have a large amount of money in my Traditional IRA. Could I not transfer this money back into a traditional 401k at my current employer and then apply the rule of 55 to get to it without penalty when I retire?
Just a thought I was having. Always nice to have more options when the time comes. Not sure if you are allowed to do this?
So… my goal is to retire at 55. And to avoid penalties where I can for early withdrawals. I should have enough personal contributions in my Roth 401k at my current employer, that when I retire, I can move that money over to my Roth IRA, and combine that with my personal contributions there, to easily have enough to make it to 59.5 when all the penalty “chains” come off.
But then I got to thinking, I actually have a large amount of money in my Traditional IRA. Could I not transfer this money back into a traditional 401k at my current employer and then apply the rule of 55 to get to it without penalty when I retire?
Just a thought I was having. Always nice to have more options when the time comes. Not sure if you are allowed to do this?