If I retire from my current employer of 33 years using the Rule of 55, can I contract back to the same employer and still avoid the penalty on early withdrawals?
Wanted to use Rule of 55 to avoid paying penalty on drawing from a company sponsored retirement plan. However, was thinking about going back as a contractor and did not know if that would cause problems with the Rule of 55.
01224
1 Replies
Bsch4477
Level 15
Nov 28, 2021 2:39:11 PM
Working for the same company as an independent contractor while withdrawing your retirement consistent with the 55 rule does not affect the tax liability of those withdrawals.