topic 401k 55 rule @ 56? in Retirement tax questions

401k 55 rule @ 56?

RobGCar68 — Thu, 23 Jan 2025 12:08:07 GMT

i was let go recently at 56. Was told that i can not withdraw my 401k without a 10% penalty because i am 56.

That sounds insane.

55 or 59 ONLY?

Please someone help.

Thanks,

Rob

DoninGA — Thu, 23 Jan 2025 12:22:01 GMT

Exception to the 10% early distribution penalty from a 401(k) - https://www.irs.gov/taxtopics/tc558

Distributions made to you after you separated from service with your employer after attainment of age 55.

Opus 17 — Thu, 23 Jan 2025 14:49:00 GMT

You are exempt from the penalty if you separate from service in the year you turn 55 or after.