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... You can't touch this money in the 401(k) until you're 59 1/2 without penalties....

Agg97: A common misconception, and totally untrue. You can roll it over into a traditional IRA after you retire, and take 72(t) distributions, or SEPP. Check out IRS Publication 590 for more info.

In addition, 401(k) withdrawals are exempted from early withdrawal penalties if you terminate employment from that employer (not a former employer) any time in the calendar year you turn 55, or later.
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