401k vs. Rollover to IRA for SEPP treatment

L1: 401k vs. Rollover to IRA for SEPP treatmentHere”s my situation. I would like to retire prior to age 55 with a company sponsored 401k plan. I cannot find clear guidance as to whether I can do SEPP withdrawals (for at least 5 years or until age 59.5, whichever is longer), or do I actually have to rollover my 401k to an IRA prior to doing so. I am quite happy with my current 401k investment options and expense rates vs. what I”ve been able to find in IRA accounts.
Any experience with doing successful SEPP withdrawals from 401k plans, would be helpful. It has been difficult to get consistent answers from my 401k plan administrators and various financial advisors.
Thanks in advance for any helpful replies.2007-11-06 21:51, By: sjrepka, IP: [70.101.182.208]

L2: 401k vs. Rollover to IRA for SEPP treatmentIf you terminate before age 55, the answer is probably “no” to doing a 72t from the 401(k) – not because you can”t, but because the plan document may not allow it.
Start by reading your Summary Plan Description and then check with the Plan Administratorof your 401(k) plan – only they have the answers.2007-11-07 15:22, By: Gfw, IP: [74.136.102.241]

L2: 401k vs. Rollover to IRA for SEPP treatmentThere are several areas where an IRA under your own control provides you will greater flexibility than a 401k, even if the plan allows for a 72t plan. Among others, you could run into complications in a company merger or buyout affecting the plan, or change of plan administrators that fail to understand your 72t plan. You cannot roll it over to another employer plan that is active or transfer it to an IRA, which is considered another type of retirement plan. Both of those would bust your plan. Another potential problem is if you just left the company, the plan balance may be affected by corrective measures taken for discrimination testing failures.
On balance, the IRA transfer is the way to go, and before you do anything check to see if any appreciated company shares carry potential for NUA.2007-11-07 18:45, By: Alan S., IP: [24.116.165.60]