I have an old employers 401K and am considering 3 options for the funds in this account. The choices would be to leave my funds in the old 401K, rollover the funds into a Traditional IRA or roll the funds into my current employers plan. My specific question pertains to the 10% penalty(or no penalty) before the age of 59 1/2 under each scenario if I were to need to access any of the funds in these accounts. I am pretty clear on the advantages and disadvantages of other aspects of each option. I understand that I can take distributions from a current employers 401k between the ages of 55 and 59 1/2 without penalty if no longer with that employer but unclear on about a former employers plan. For the record I am 56 year old and the current company I work for purchased my old employer in 2015(the old 401k) when I was 51 years old. Please let me know if I'm correct on the information below for the 3 different options concerning the 10% penalty.
1) Leave funds in old 401K. Because the company was purchased when I was 51 years old and under the age of 55 the rule of 55 would not apply and I would have to wait until age 59 1/2 to access the funds without penalty.
2) Old 401K to Traditional IRA Rollover-I would have to wait until age 59 1/2 to withdraw any funds without penalty
3)Old 401K to current employers 401K. I can access funds in my current employers 401K at any time without penalty since I am between the ages of 55 and 59 1/2.