Forums
New posts
Search forums
What's new
New posts
New media
New media comments
Latest activity
Classifieds
Media
New media
New comments
Search media
Log in
Register
What's New?
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Navigation
Install the app
Install
More Options
Advertise with us
Contact Us
Close Menu
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Forums
The Water Cooler
General Discussion
Trump seeks to update retirement rules, help Americans save more
Search titles only
By:
Reply to Thread
This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Message
<blockquote data-quote="dennishoddy" data-source="post: 3151565" data-attributes="member: 5412"><p><a href="https://www.forbes.com/sites/janetnovack/2013/01/15/11-ways-to-tap-retirement-cash-early-without-a-10-penalty/#113515c33f4c" target="_blank">https://www.forbes.com/sites/janetnovack/2013/01/15/11-ways-to-tap-retirement-cash-early-without-a-10-penalty/#113515c33f4c</a></p><p></p><p>If you retire after age 55 and take a distribution of some or all of your 401(k) plan, the amount you take will be subject to income tax. But you won't have to pay the early distribution tax.</p><p></p><p>The age-55 rule applies only to qualified employer plans (like 401(k) plans). And, being a legal rule, it comes with a number of flummoxing exceptions. For example, if you took a distribution and rolled it over into an IRA first, you're stuck and must wait until you are 59 1/2 -- unless some other exception applies in your specific plan.</p><p></p><p>And if you were to retire and leave your money in your former employer's 401(k), the terms of the employer plan might preempt the federal rule. For example, the plan might require you to wait until you reach a specific age -- 62 or 65 are common cutoffs. Or some plans give an option to take a distribution once a year.</p><p><a href="https://www.nolo.com/legal-encyclopedia/question-if-i-retire-after-55-28075.html" target="_blank">https://www.nolo.com/legal-encyclopedia/question-if-i-retire-after-55-28075.html</a></p><p>To find out the exact rules, check with your plan administrator.</p></blockquote><p></p>
[QUOTE="dennishoddy, post: 3151565, member: 5412"] [URL]https://www.forbes.com/sites/janetnovack/2013/01/15/11-ways-to-tap-retirement-cash-early-without-a-10-penalty/#113515c33f4c[/URL] If you retire after age 55 and take a distribution of some or all of your 401(k) plan, the amount you take will be subject to income tax. But you won't have to pay the early distribution tax. The age-55 rule applies only to qualified employer plans (like 401(k) plans). And, being a legal rule, it comes with a number of flummoxing exceptions. For example, if you took a distribution and rolled it over into an IRA first, you're stuck and must wait until you are 59 1/2 -- unless some other exception applies in your specific plan. And if you were to retire and leave your money in your former employer's 401(k), the terms of the employer plan might preempt the federal rule. For example, the plan might require you to wait until you reach a specific age -- 62 or 65 are common cutoffs. Or some plans give an option to take a distribution once a year. [URL]https://www.nolo.com/legal-encyclopedia/question-if-i-retire-after-55-28075.html[/URL] To find out the exact rules, check with your plan administrator. [/QUOTE]
Insert Quotes…
Verification
Post Reply
Forums
The Water Cooler
General Discussion
Trump seeks to update retirement rules, help Americans save more
Search titles only
By:
Top
Bottom