HiHoping 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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