I would like to retire next year. I turn 55 in May but would like to retire in Jan and pull from my 401k. According to IRS pub 575, I think it says you can do this without the 10% penalty as long as you leave your company in the year you turn 55 and keep your money in the 401k. You can take withdrawls without limits dependant on the rules of the 401k. My question is this: Can I retire in Jan and take the withdrawls even before I turn 55? I have seen several misleading quotes that are confusing me.