401k age 55 -59
It is my understanding that I can take out money from a old 401K if I am 55 or older and I have separated from service. My question is if I am now employed with a new employer do I still have the ability to take money from the old 401K without the 10% penalty?
Permalink Submitted by Alan - IRA critic on Thu, 2013-05-23 02:09
The penalty exception applies to qualified plans when you separate in or after the year you turn 55. If you separate sooner, the exception does not apply even if you wait until 55 to take distributions. Once you qualify for the exception from a former plan, whether you are working at another job or not does not matter, as the exception is still valid.
Permalink Submitted by Eric Woodfill on Thu, 2013-05-23 09:02
thank you