L1: 401kI was separated from my job in 2007 at the age of 53. If I find a new job that will allow me to transfer my 401k to their plan and then separate from that company in the year that I turn 55 would it then be possible to withdraw money from the 401k penalty free?2008-02-21 07:43, By: John, IP: [188.8.131.52]
L2: 401kGood morning John:
Short answer — Yes.
The only snag you may have is whether the new company”s K-plan will allow you to make periodic distributions from theaccount after you retire. Most companies will not allowthis distribution flexibility so you can take advantage of the age 55 rule. You will be cleared as far as IRS rules are concerned, but the controlling factor is the K-plan document. Check with the new company”s HR Department to determine what you options are. If you can”t take periodic distributions directly from the K-plan then you are stuck with an IRA Rollover and then start a 72(t).
Jim2008-02-21 07:55, By: Jim, IP: [184.108.40.206]
L2: 401kThanks Jim.2008-02-21 14:49, By: John, IP: [220.127.116.11]