Consult your plan administrator to see if your situation is considered a "separation from service."
If the plan is a 401K, it is an exception to the 10% penalty if the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan).
See Separation from Service in this IRS reference:
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
