Al18
Full time employment: Posting here.
I just reviewed IRS Publication 575 concerning the exemption from 10% penalty for 401K distributions after you've separated from service in or after the year you reach 55.
What would happen if you took a 401K distribution at age 55, then rejoined the same company 2 months later on a part-time basis? The period of separation doesn't seen to be defined in Publication 575. There is a related discussion on page 20/21 concerning Lump-Sum Distributions, but states this section only applies if the participant was born before January 2, 1936. I was born decades later.
What would happen if you took a 401K distribution at age 55, then rejoined the same company 2 months later on a part-time basis? The period of separation doesn't seen to be defined in Publication 575. There is a related discussion on page 20/21 concerning Lump-Sum Distributions, but states this section only applies if the participant was born before January 2, 1936. I was born decades later.