You will not have to pay the 10% penalty on your 401(k) distribution. According to the IRS:
The 10% tax will not apply if distributions before age 59 ½ are made if "Made to a participant after separation from service if the separation
occurred during or after the calendar year in which the participant
reached age 55,"
The rules are different for your "Roth 404(k). Instead of a 10% penalty, you may have to include a portion of the distribution in gross income. According to the IRS:
A qualified distribution is generally a distribution that is made after a 5-taxable-year period of participation and is either:
- made on or after the date you attain age 59½
- made after your death, or
- attributable to your being disabled.
A qualified distribution from a designated Roth account is not included in your gross income. You must include the earnings portion of a
nonqualified distribution
in gross income. However, the basis (or contributions) portion of the
nonqualified distribution is not included in gross income.
