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Author: ray9640 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Early IRA Withdrawal??? Date: 1/13/1998 9:29 PM
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Hi
Hoping there's an IRA-knowledgeable Fool out here somewhere...have a question regarding rules for early withdrawal of 401K funds prior to 59 1/2...
I'm close to 55, work for large company with standard 401K-type plan (Vanguard funds)...the company will be having an announced early retirement next year, which I will likely take. My age will be 56-56 1/2 at that time. the amount of the 401K is enough such that I can convert all the equities at time of rollover to mid or long term treasuries, and stand to earn around $15K in interest income yearly. I might need the extra income from this source to supplemnt a reduced salary from retirement. Problem is, I'll still have 3 years to go before being able to withdraw money without the 10% penalty.

I understand there are several situations in which the IRS will allow early withdrawal without penalty. I've heard there is some type of 5-year plan in which you can take out equal amounts at yearly or semi-annual intervals during the 5 year period without paying the 10%, but dont have any of the details.

Anybody familiar with this? How about sources on the Fool or any other online source which would provide details. thanks, and keep Fooling around.

Ray
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