I'm 56, and plan on shedding the full-time job next year. I also plan on using "Rule of 55" to bridge the gap until 59.5. I have verified that my current employer's plan supports non-lump sum withdrawals.
I understand that 20% will probably be held back from my distributions for taxes, some of which may be recovered when filing taxes. This actually can be viewed as a good thing in a way, as I will not need to do quarterly IRS payments.
i have read online that I can take "Rule of 55" distributions, then get another job and still receive the distributions from my former employers plan.
I cannot seem to find anything about having two jobs (one full and one part-time in my case). I plan to shed the full-time job and keep the part-time job.
So for "Rule of 55" distributions, is my part-time job going to be an issue?
Are "Rule of 55" distributions allowed for a former employers plan even when employed by a new employer, or do you have to invoke the "Rule of 55" when between jobs?
I understand that 20% will probably be held back from my distributions for taxes, some of which may be recovered when filing taxes. This actually can be viewed as a good thing in a way, as I will not need to do quarterly IRS payments.
i have read online that I can take "Rule of 55" distributions, then get another job and still receive the distributions from my former employers plan.
I cannot seem to find anything about having two jobs (one full and one part-time in my case). I plan to shed the full-time job and keep the part-time job.
So for "Rule of 55" distributions, is my part-time job going to be an issue?
Are "Rule of 55" distributions allowed for a former employers plan even when employed by a new employer, or do you have to invoke the "Rule of 55" when between jobs?