At age 55, if you leave your job, you don't pay a penalty to take out money from your 401k right?
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New Member

At age 55, if you leave your job, you don't pay a penalty to take out money from your 401k right?

 
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Level 4

At age 55, if you leave your job, you don't pay a penalty to take out money from your 401k right?

"The following additional exceptions apply only to distributions from a qualified retirement plan other than an IRA:

  1. Distributions made to you after you separated from service with your employer if the separation occurred in or after the year you reached age 55, or distributions made from a qualified governmental defined benefit plan if you were a qualified public safety employee (state or local government) who separated from service in or after the year you reached age 50."


https://www.irs.gov/taxtopics/tc558.html

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Level 15

At age 55, if you leave your job, you don't pay a penalty to take out money from your 401k right?

To be clear, this exception only applies to distributions from the plan provided by the employer that you left at age 55, not a plan provided by some other employer that you left before the year you reached age 55.
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