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January 23, 2025
Question

401k 55 rule @ 56?

  • January 23, 2025
  • 2 replies
  • 0 views

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

2 replies

DoninGA
Employee
January 23, 2025

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.
Employee
January 23, 2025

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