Does Rule 55 apply to someone in a 401A? I work for my state (WV) and I was told it does apply and I will not pay the 10% penalty. Does that sound correct?

[klhetzer4]

I was also told if I roll it into anything else, I would be penalized.

[ThomasM125]

You are correct, if your 401(a) plan allows rule 55 distributions then you can take distributions without penalty once you reach age 55 and leave employment with the company. You cannot transfer your funds from the plan to another plan or you will be penalized.

[klhetzer4]

Thank you!