- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Penalty for 401k withdrawal
Posted on 8/31/23 at 5:08 pm
Posted on 8/31/23 at 5:08 pm
I heard that if you are over the age of 59.5 you don’t have to pay the 10% penalty that would normally apply. Is this correct? TIA
3
Posted on 8/31/23 at 5:32 pm to Julz5198
Correct no more early withdraw penalty
Posted on 8/31/23 at 7:26 pm to Julz5198
No penalty after 59.5 thats the standard 401k minimum penalty free withdrawal age.
Get penalty free access earlier using one of the following:
Leave employer in or after year you turn 55
Set up 72(t) SEPP at any age
Do a Roth conversion ladder and wait 5 years
Get penalty free access earlier using one of the following:
Leave employer in or after year you turn 55
Set up 72(t) SEPP at any age
Do a Roth conversion ladder and wait 5 years
Posted on 8/31/23 at 8:58 pm to Julz5198
You’re still taxed on the money though. Have you considered any alternatives?
Posted on 9/1/23 at 9:07 am to slackster
Is there a medical exemption of some sort? Will need to dip into some of these funds for a cancer related issue
Posted on 9/1/23 at 12:54 pm to TorchtheFlyingTiger
Torch is correct. I just learned about the Age 55 rule through one of my firm's clients. Check it out if that applies to you.
Posted on 9/1/23 at 7:26 pm to lsu for the win
Take note: The Rule of 55 only applies to 401k from the employer you leave when you are 55 or older. Any money in previous employer's 401K's or in IRA's is subject to early withdrawal penalties.
Posted on 9/1/23 at 7:58 pm to CharlesUFarley
True, but you may be able to rollover existing IRAs or previous employer 401k in order to consolidate before leaving current employer. Besides, hopefully you need some for after 59.5.
Posted on 9/1/23 at 8:00 pm to Julz5198
Medical hardship withdrawals still incur taxes and 10% penalty if under 59.5.
Posted on 9/1/23 at 8:17 pm to Julz5198
quote:
Is there a medical exemption of some sort? Will need to dip into some of these funds for a cancer related issue
You may also consider taking out a loan from your 401k. You pay interest, but it is paid back to your account.
Posted on 9/1/23 at 9:37 pm to TorchtheFlyingTiger
quote:
Leave employer in or after year you turn 55 Set up 72(t) SEPP at any age Do a Roth conversion ladder and wait 5 years
This. 72(T) is an exception.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News