So, I'm really crunching scenarios to be FIRE - and I've asked my current megacorp 401k benefits center about the rules for early distributions from the 401k.
If I can RE - it will be after my 55 birthday while still employed at Megacorp.
So, when I asked the Benefits Center just to confirm that I could make distributions (not a roll over) from the 'qualified Plan' the reply was no - I have to wait until 59 1/2 - otherwise I get hit with the 10% early withdrawal.
I then replied that I have read that you *can* make early withdrawals w/o the 10% penalty as long as I am older than 55 and it is from that 401k.
I got a follow up reply saying, no you can't.
Hmmm...so I checked the IRS Publication 575 and it says I can.
So, should I just say thank you to the Benefits Center and let any penalty be the business of me and the IRS, or can my Megacorp 401K plan administrator really dictate/restrict my distributions if I do retire after 55 and not get anything before 59 1/2?
If I can RE - it will be after my 55 birthday while still employed at Megacorp.
So, when I asked the Benefits Center just to confirm that I could make distributions (not a roll over) from the 'qualified Plan' the reply was no - I have to wait until 59 1/2 - otherwise I get hit with the 10% early withdrawal.
I then replied that I have read that you *can* make early withdrawals w/o the 10% penalty as long as I am older than 55 and it is from that 401k.
I got a follow up reply saying, no you can't.
Hmmm...so I checked the IRS Publication 575 and it says I can.
So, should I just say thank you to the Benefits Center and let any penalty be the business of me and the IRS, or can my Megacorp 401K plan administrator really dictate/restrict my distributions if I do retire after 55 and not get anything before 59 1/2?