Sunset
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Great advice... my employer does have the specifics about 401k withdraw at 55 posted on our company website. Here is where my head really begins to spin. When I do retire, do I roll it over to an IRA, or keep some of it with the Principal Group which manages my employer's 401K. I understand the tax ramifications. I don't hold on to my company stock when I receive it, so there is no special tax treatment there in capital gains treatment. I do have a financial adviser through the Principal Group, but with being in a 401K, investments choices are limited to the plan. However, at retirement, I will be very confused and dizzy to go from there with this portfolio that grew... to my surprise and dumb luck.
The following is my understanding, but I did not do this, so I could be wrong (and someone please correct me so I know).
If you retire at less than 59.5, you will have to keep a large portion of your 401K in the 401K, possibly all of it, because if you roll it over to an IRA, then you will pay penalties for early withdrawal from the IRA.
You are allowed early withdrawal from some 401K's without the penalty.
Some 401K's only allow a single roll-over.