I've read some posts on here where folks must not be familiar with the Age 55 rule as it applies to a 401k. If you retire from the employer where your 401k is held and you are at least 55, you can access your 401k funds without penalty. You do NOT have to wait until you are 59 1/2 yrs old. If you have rolled funds out of the 401k into an IRA, those funds are NOT eligible for a penalty free withdrawal. So keep that in mind when you consider whether to do an in-service roll over
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I've consulted a Retirement specialist recently that I will be using to help me with all this stuff when I leave .
I got the same info from him. I can retire next year when I turn 55 without penalty.
We have two VZ pensions and two 401Ks to draw on.
“Accessing your 401K at 55 = not a smart move unless you're planning to die young.”
Depends on how much you have and how much you spend. If like me you’ve been maxing it out for 30 years, invested heavily in equities, have a spouse with their own 401k, always lived below your means, zero debt, it’s completely feasible to retire at 55.
Accessing your 401K at 55 = not a smart move unless you're planning to die young.
https://www.businessinsider.com/rule-of-55-401k-early-withdrawal
This rule of 55 is true, but just know that Verizon's fidelity 401k plan only allows 1 retiree withdrawal annually. It is not eligible for monthly payments.
To the first reply , you are confusing a 72T option with the Age 55 rule. A simple Google Search will clear it up for you. They are two different options. You need to be only 55 to access your 401k without penalty when you retire from the company that holds the 401k
The "rule of 55" and a section 72t distribution are two totally different types of withdrawals to avoid paying the additional 10% penalty. The rule of 55 does not have specific time frames or withdrawal amounts like the 72t does. However, you do not need to be in calendar year 55 to access funds via the 72t as you would to utilize "the rule of 55" . Hope this helps clarify the previous post.
That should have read prior to 59 1/2, not 55. Also it's for 5 years or until you reach 59 1/2, whichever is longer.
You can only access funds prior to 55 without penalty (aside from Covid), for hardship, education, first time home purchase and certain medical expenses. Outside of that is the 72t, which I assume is what you are referring to. This one REQUIRES that you withdrawn a certain amount based on your age and the size of your account per year for FIVE years, even if you do not need it that long. Please be careful with your 401k and consult a qualified financial planner if you are not yet 59 1/2.
This was the only thing holding me back from the VSP last time. Come next year, bring it on.
Something useful in this forum. Thanks for posting
Ok Boomer.