DH has a qualified defined contribution money purchase pension plan. He retired at age 55 this year (2011). Rules say that he can access that money penalty free in the year he retired after age 55 or the following year.
Our question is this: If we choose to access that money before age 59 1/2 and want to avoid the 10% penalty, are we reading the rule correct that he would need to take that portion of the distribution by the end of 2012? Or could he access penalty free in say 2013 or 2014? Kinda confusing!
Our question is this: If we choose to access that money before age 59 1/2 and want to avoid the 10% penalty, are we reading the rule correct that he would need to take that portion of the distribution by the end of 2012? Or could he access penalty free in say 2013 or 2014? Kinda confusing!