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Can I excercise the 55rule to avoid paying a 401K/403B withdrawl penalty even though my plan is to continue working?

Can I excercise the 55rule to avoid paying a 401K/403B withdrawl penalty even though my plan is to continue working?

I was 56 in 2018 when I quit a job because I wanted to find another job.  My plan is to withdraw (in 2019) all or part of the 401K/403B from that job I left. 

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1 Reply
dmertz
Level 15

Can I excercise the 55rule to avoid paying a 401K/403B withdrawl penalty even though my plan is to continue working?

Since you separated from service with this employer in or after the the year you reached age 55, you qualify for the age-55 exception to the early-distribution penalty on distributions from the 401(k) and 403(b) plans provided by this employer.

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