Rule 55 question 401(k)

[thegrind]

I worked at a previous company and I have a 401(k) (I'll call it #1) still with them. I work for another company with another 401(k) (#2). I know if I leave the company at the age of 55 I can take from #2 and not #1 without paying the 10% penalty. Can I roll #1 into #2, assuming my company allows it, then I can draw from #2 and in effect #1 without the 10% penalty? I tried a google search and I couldn't find anything on doing this. I don't need to do it. I was just wondering if it was possible.

[ncbound]

Yes you can. Just make sure to do the rollover before you leave company #2. I did it last year and plan on taking advantage of this rule.

[Lawrencewendall]

Roll #1 into #2 and you should be good.

[RE2Boys]

Make sure that plan #2 has provision allowing the Rule of 55. While allowed by IRS, a company is not required to fall the Rule of 55.

[thegrind]

Quote:

Originally Posted by RE2Boys Make sure that plan #2 has provision allowing the Rule of 55. While allowed by IRS, a company is not required to fall the Rule of 55.

Thanks for this. I will check my plan to see if it allows for this. I will probably also need to check if they allow partial withdrawals under Rule 55.