My mega is switching from Principal to Vanguard. (Yippee) Today we had our brief by the Vanguard rep. I asked the 55 question. At first she said she didn't know. Later she said no (I really don't think she knows). After the brief I spoke to HR. They didn't know for sure and still didn't have the SPD from corporate. I am waiting to receive that document.
Here is my question: Let's say the plan doesn't allow it. If at say 56 I want to take money out, pay taxes and incur the 10% penalty I can do that right? If the IRS allows the withdrawal at 55 then how could the IRS then penalize me 10%? Can the mega tell the IRS that it isn't allowed and then the IRS charges me the 10% penalty even though they themselves allow withdrawal at 55? Or would Vanguard just not let me take anything until 59.5? I have already informed management that if the SPD says that we can not withdraw at 55 I want to challenge that and ask the question why?
Here is my question: Let's say the plan doesn't allow it. If at say 56 I want to take money out, pay taxes and incur the 10% penalty I can do that right? If the IRS allows the withdrawal at 55 then how could the IRS then penalize me 10%? Can the mega tell the IRS that it isn't allowed and then the IRS charges me the 10% penalty even though they themselves allow withdrawal at 55? Or would Vanguard just not let me take anything until 59.5? I have already informed management that if the SPD says that we can not withdraw at 55 I want to challenge that and ask the question why?