Access to Retirement Funds

[Like2Plan]

I haven't seen this mentioned before, but some 401K plans permit penalty free withdraw at age 55 if you retire . Mine did. I don't know how many plans allow this, but it would be worthwhile investigating especially if early retirement is part of your plan.

[TexasHusker]

I haven't seen this mentioned before, but some 401K plans permit penalty free withdraw at age 55 if you retire . Mine did. I don't know how many plans allow this, but it would be worthwhile investigating especially if early retirement is part of your plan.

I'm no expert, but I believe that the only entity that determines penalties and the various terms of early withdrawals is the Internal Revenue Service. Any penalties are paid to them.

I believe that 59 is the magic age for penalty free withdrawals on IRAs, 401Ks, 403Bs, etc., but I could be wrong.

[Like2Plan]

I'm no expert, but I believe that the only entity that determines penalties and the various terms of early withdrawals is the Internal Revenue Service. Any penalties are paid to them.

I believe that 59 is the magic age for penalty free withdrawals on IRAs, 401Ks, 403Bs, etc., but I could be wrong.

Here is a link that goes into detail: http://www.fedsmith.com/2015/04/05/c...tsp-penalties/

Recently, congress passed a law that permits certain federal jobs (like LEOs with 20 year retirements) as early as age 50 penalty free (on retirement).

I used to think this was unique to TSP, but I have seen some 401k plans set up with "megacorp" also allow for this. So, it pays to read the plan documentation.
Also, it is another consideration when retiring at age 55 and possibly planning to do a rollover to an IRA (because the age is 59.5 for the IRA).

[corn18]

The IRS does allow this:

https://www.irs.gov/taxtopics/tc558.html

[TexasHusker]

The IRS does allow this:

https://www.irs.gov/taxtopics/tc558.html

Interesting stuff. All the more why I loathe these things. Rules, regs, exceptions for certain job types. Goodness.

[corn18]

Interesting stuff. All the more why I loathe these things. Rules, regs, exceptions for certain job types. Goodness.

Why do you spend so much energy badmouthing the way that a lot of us on this forum invest? I don't attack your invest method. It would be much more helpful if you offered advice on how to be successful at what you have done vs. the constant berating of the IRA and 401k. It's getting old.

Tom

[TexasHusker]

Why do you spend so much energy badmouthing the way that a lot of us on this forum invest? I don't attack your invest method. It would be much more helpful if you offered advice on how to be successful at what you have done vs. the constant berating of the IRA and 401k. It's getting old.

Tom

Point taken.