What is the 401(k) rule of 55?

The rule of 55 is an IRS policy that allows workers to take early withdrawals from their employer-sponsored retirement accounts, such as 401 (k)s and 403 (b)s, at age 55 or older without paying a 10% penalty provided that they leave their jobs. It only applies to accounts you have with your current employer.

Can I withdraw from my 401(k) before 59 12?

Under the Rule of 55, it’s possible to start withdrawing from your 401 (k) before you turn 59 ½ without suffering from the usual 10% IRS penalty—but is this the best option for your long-term retirement goals? If you leave or lose your job the year you turn 55, you can take your 401 (k) withdrawals early without penalty

What is the 401(k) withdrawal age?

She is based in Los Angeles. There’s one special exception to the standard 401 (k) withdrawal age: the Rule of 55. Using this provision, you can take distributions at age 55 without penalty.