My main question is has anyone here actually used the Rule of 55 or have experience actually invoking it?
Is this a federal rule/law, meaning that all 401K providers must allow this? Or do you really need to consult the 401K management team supporting your companies 401K plan to see if this option is available? (in my case, that would be Empower).
My general understanding is the 401K provider doesn't matter in invoking this option -- you just sign some federal form to the IRS indicating you're invoking this option, since you comply with the requirement (of leaving/retiring the company sponsoring your 401K in the year you turn 55; in which case no early-withdrawal penalty is involved).
In my case, I do full pre-tax 401K contributions. Can "rule of 55" apply to a Roth 401K as well? Are they separate accounts with their own ~$18K contribution limit, or is it a combined contribution?
Is this a federal rule/law, meaning that all 401K providers must allow this? Or do you really need to consult the 401K management team supporting your companies 401K plan to see if this option is available? (in my case, that would be Empower).
My general understanding is the 401K provider doesn't matter in invoking this option -- you just sign some federal form to the IRS indicating you're invoking this option, since you comply with the requirement (of leaving/retiring the company sponsoring your 401K in the year you turn 55; in which case no early-withdrawal penalty is involved).
In my case, I do full pre-tax 401K contributions. Can "rule of 55" apply to a Roth 401K as well? Are they separate accounts with their own ~$18K contribution limit, or is it a combined contribution?