Buying back time? Worth the investment?

[armor99]

Quote:

Originally Posted by old medic I have reached my 30 years and can retire today at 57, but no insurance. when I do retire I will go on her insurance at around $550 a month. The Wife has another 9 years to go to get insurance as a retirement benefit, she will be 61 at that time. I will be on Medicare by then... BUT... she worked as a part time person almost 2 years before becoming FT and can buy that time back... Approx $24000 will move her retirement back 19 months, providing insurance to her for from 59 to 65... I will need to find other coverage for a year. Considering rolling money from her 401K to buy the time back, but not sure if there would be withdraw penalties doing that. Anyone care to voice an opinion good or bad.... TIA

The rule of 55 allows you to take money from your 401k with no panalties the year of your 55 birthday... so all good there. However, you have to retire from the company for that to work. At least I think you do. Someone with more knowledge feel free to correct me...

[old medic]

Quote:

Originally Posted by armor99 The rule of 55 allows you to take money from your 401k with no penalties the year of your 55 birthday...

Well the money came from HER 401K at 52, penalty free, and no taxes. and rolled into her state retirement time...
Over the 19 months she will collect about 30K more than she paid for that time.
Calling that a win!