Payout exception to 10% penalty

L1: Payout exception to 10% penaltyI am 55 years old and recently released from a lifetime position. I leave with a substantial 401k retirement plan. I have been offered a new job with a new company, but at much less annual income. Can I set up a SEPP to use until I am 591/2 to supplement the income I will receive in my new job?2010-10-06 18:36, By: RAR, IP: [173.23.177.25]
L2: Payout exception to 10% penaltyIt may not be, or probably is not, necessary to set up a SEPP 72-T at all. If your former company plan allows it, you can make withdrawals as needed from your 401-k plan without any 10% penalty since you are 55 or older, and “separated from service” from that company.
Also, ask if your plan has “company stock”. If so, ask for the cost basis, and contact a tax professional about NUA ( Net Unrealized Appreciation), a special provision in the tax code, if the stock has appreciated significantly over its cost when it was bought by the company in the plan.2010-10-06 19:25, By: dlzallestaxes, IP: [72.78.110.86]