Seperation before 55

L1: Seperation before 55I have considered retiring early at age 50. Then begin drawing my 401k and pension at age 55. After reading an article on Yahoo[1] (which refers to this site, congratulations!), I think I misunderstand how this works. Q. Is it true that I won”t be legally eligible to receive my 401k at age 55 if I seperate before age 55? (I understand it”s also dependent upon whether the plan provides for distributions before 59-1/2.).Q. Will I be eligible for the “substantially equal periodic payments” thing allowing me to start the 5-year payments at age 55 to 60? Basically allowing me to do what I wanted to do in the first place, but limited to precise distributions which I wouldn”t have been limited to if I didn”t seperate until age 55? (I understand this requires that I rollover my 401k to an IRA).Thanks in advance. I understand there are a lot of details, and I should see a professional before deciding anything. I just wanted to see if my general understanding is correct. I think I misunderstood it until I read that Yahoo article. I”m glad I read the article. I”ve got a few years to learn about it.[1] http://biz.yahoo.com/kiplinger/070416/iptc_20070411101548_id.html?.v=1&.pf=banking-budgetingMark2007-04-26 09:08, By: Mark, IP: [144.189.5.201]
L2: Seperation before 55Hi Mark:
Read my reply to “Susie-Q” in the post just prior to yours. I think it will answer your questions. Also, read through the FAQ”s on this site to get a good understanding of 72(t) / SEPP Plan operations.
One comment about your second qustion. You can start a SEPP Plan at any age, but it must run for atleast 5 years and until your age 59 1/2. So if you start at age 50 1/2 the plan must run9 years till you reach age 59 1/2.
Jim2007-04-26 09:26, By: Jim, IP: [24.252.195.14]