Age 55 Confusion

L1: Age 55 Confusionhi-i am a bit confused as I have read conflicting reports here. Does one have be or attained the age of 55 to avoid penalty or can one rollover in the year you turn 55. I will turn 55 in December 2007.many thanks2007-01-08 17:01, By: safford, IP: [24.235.224.206]
L2: Age 55 ConfusionHello Safford:
You must attain the age of 55 or greater in the year you separate from service from your employer. You need not be 55 when you actually separate. Furhtermore, you may not rollover the assets in the plan; instead the assets must remain in the plan and withdrawals must be made form there.
TheBadger
wjstecker@wispertel.net
2007-01-08 17:31, By: TheBadger, IP: [72.42.67.148]

L2: Age 55 ConfusionGood morning Safford:
The difinition of “attained age” tends to adda lotto the confusion onthis topic. It”s really simple when you ask the following question:
“How old will you be on December 31st of any particular year?” That will determine your “attained age.”
It does not matter whether your birthday is January 1st or December 31st, or any date in between. In your case, you could retire / separate anytime in 2007 and qualify for the age 55 penalty exception because you will “attain age 55” during 2007. Of course, like TheBadger states, you have to leave the funds in your K-plan at work and may not process an IRA Rollover until after ACTUAL AGE 59 1/2.
Jim
2007-01-09 06:40, By: Jim, IP: [70.184.2.72]