My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

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My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

If you're referring to the 10% penalty exception for separation of service at age 55, the answer is unfortunately, no. See page 20 of this IRS publication. Under the penalty exceptions it states:

"Made to an employee after separation from service if the separation occurred during or after the calendar year in which the employee reached age 55."

https://www.irs.gov/pub/irs-pdf/p560.pdf

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My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

So she was age 54 when she separated from service?

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

Yes

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

If you're referring to the 10% penalty exception for separation of service at age 55, the answer is unfortunately, no. See page 20 of this IRS publication. Under the penalty exceptions it states:

"Made to an employee after separation from service if the separation occurred during or after the calendar year in which the employee reached age 55."

https://www.irs.gov/pub/irs-pdf/p560.pdf

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

Was she a Public Safety employee?

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

No private company.

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My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

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My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

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My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

My wife’s employment was terminated in November of 2018, she turns 55 in June 2019. Does the rule 55 apply if she removes her $$ from the 401 k

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