No Penalty Distribution from 401K

L1: No Penalty Distribution from 401KHello:
I am retiring next month and I my company sponsored 401K is with Fidelity. I am looking at 72T withdrawal, but the Fidelity rep told me that I can take a no penalty distribution of any amount from my 401K when I roll it over. I am getting so much information that I am baffled. Can you verify this? Thanks very much.2004-04-13 19:50, By: RMV, IP: [209.173.188.207]

L2: No Penalty Distribution from 401KI won’t rant on bad info from brokerages; suffice to say they are WRONG, but they were sorta close. If you are 55 or older now or will become 55 before 12/31/04 you can take penalty free withdrawals of any amount you choose; but ONLY if you do not rollover your 401(k) assets to an IRA. The assets must remain in the plan.
TheBadger
wjstecker@wispertel.net
2004-04-13 22:05, By: TheBadger, IP: [38.116.134.130]

L2: No Penalty Distribution from 401KTo TheBadger,
I was under the impression that a penalty-free withdraw from a 401K(under 59 1/2)was only possible if the owner was “involuntarily separated” fromemployment and that any voluntary retirement was subject to the 59 1/2 rules.
Am I incorrect; please explain.
Thanks,
gus2004-04-14 04:21, By: gus, IP: [206.149.200.37]

L2: No Penalty Distribution from 401KThe cause of separation from the employer is irrelevant. The only two requirements are: (1) separation has actually occurred; (2) the taxpayer attain age 55 or older in the year of separation.
TheBadger
wjstecker@wispertel.net
2004-04-14 06:29, By: TheBadger, IP: [38.116.134.130]

L2: No Penalty Distribution from 401KI also just retired and Fidelity has my company sponsored 401K plan. They told me that I could leave it all in the 401k or roll a part of it into an IRA and that I could then draw from the 401k penalty free but that they would take out the required 20% federal taxes. But you do have to turn 55 this year. That way I won’t be tied up for 5yrs in a SEPP.2004-04-14 11:36, By: Richard, IP: [24.5.159.113]

L2: No Penalty Distribution from 401KThanks Badger and Richard for your responses. That was the info I was looking for. This is a great site. I look at it everyday and learn something. I have passed it on to several of my friends.2004-04-14 20:32, By: RMV, IP: [209.173.188.207]

L2: No Penalty Distribution from 401KThanks for the great site. I follow this every day and am learning a lot. I’m in the same situation here and am unclear about one point. I’m 55 and am looking to retire-401k with Fidelity. Can I at retirement rollover 75% of the assets to an IRA and get a check for the remaining 25% without incurring a penalty on the cash withdrawn? Thank you.2004-04-15 05:51, By: jp, IP: [68.72.208.30]