tmm99
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 15, 2008
- Messages
- 5,227
Thanks to everyone who replied. Just got off the phone with Vanguard, and providing the youngster who was assisting me knows his stuff, my current plan does not allow early distributions other than the norm, hardship, etc. He said I’d need to close out the retirement account (401k) and roll it over to an IRA. At that point I can make unlimited withdrawals w/o penalty. However, after looking at the replies here and the thread gauss referred to (quite a discussion), it appears I would get hit with the 10% penalty if I take distributions from the IRA setup from the rollover. If I understand it right, then the only alternative to avoid the 10% is the 72t plan, correct?
You are right; you cannot take out from IRA's (or roll over IRA's) penalty free before you reach 59.5 years old, like this youngster told you. The only thing you can do with IRA is the 72t plan.
Anyway you can get a hold of the ""Summary Plan Description" document of your 401K? It should state all the information you need. My analyst gave me wrong information at first also. (I came back to this forum and that's when they told me to get the ""Summary Plan Description" document.) I called them back to get the document, and after that, I called them back again with the document in hand, the answer finally changed. I am realizing now that this problem wouldn't have happened if I talked to their retirement specialist from the beginning instead of talking to the general analysts. (This is with another firm however, but I am assuming who you talked to is a generalist, since he made a pretty big mistake on the IRA withdrawal...)
DO NOT roll over your IRA until you find out the facts about your 401K.
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