The 55 Rule Applies to Some

For those who are at least 55 years old however not yet 59 1/2 years old, since you may have been let go you should qualify for withdrawal from your 401K without paying the 10% early withdrawal fee that was in place when you were still employed.

Think you need to leave your funds where they are for now in Fidelity and you can go to the web site and notice that withdrawal of partial, monthly or all is available at the tax rate and the 10% penalty is no longer there.
"The rule of 55 is an IRS guideline that allows you to avoid paying the 10% early withdrawal penalty on 401(k) and 403(b) retirement accounts if you leave your job during or after the calendar year you turn 55.

The rule applies regardless of the terms of your separation, so you can take advantage of it whether you’re laid off or decide to retire early

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Yes I did not move mine over and left it with Fidelity / DELL Account.
I just took some money out I am 58 and paid the federal tax however not the 10%

If I had moved it over to an IRA I would not have been able to do this.

it's amazing how many financial advisers i have spoken to don't know about this. so try to keep your existing 401k and not roll it over to an ira

It’s on the fidelity web site as well as on the IRS. Gov web site that ad long as the 401k remains with the previous employers plan you can be 55 and take money out without the 10% penalty. Tax still applies of course.

If you have an account now and fall into this and model a withdrawal you will see the 10% is not listed on the bottom line. Taxes are calculated but not the 10%. I am 58 and that is what I see. Before while I was still employed it listed the 10% now that I am not working it is not there. Remember you cannot roll this money anywhere for this to be true.

As long as your 401k is at your immediately previous employer you can withdraw money from your 401k penalty free at the age of 55 years old. This means that you don't pay the 10% penalty, taxes are still owed on the money withdrawn.

Go to the authorative source: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions and scroll down to "Separation from Service" and read across the table.

I asked about this. It's 59 is what I was told even though all over the internet says you can withdrawal due to loss of job at 55. But Fidelity said you had to be 59 to do this with no penalty. Or the person I talked to did.

Thread regarding Dell Inc. layoffs

The 55 Rule Applies to Some

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