>>>I am seriously considering 'early' retirement (current age=56) and am more than a little confused with all of the apparent options regarding 401(k) withdrawals. My 'funds' currently reside in 3 basic areas, Cash/Savings (25%); Rollover IRA (50%)(from previous employer) and a smaller 401(k)(25%) with my current employer. It is my desire to draw down somewhat equally from the cash & smaller 401(k) for the next 7 years and then reduce the withdrawals by the amount I expect to receive from Social Security<<<Welcome.The post by Lempi is helpful, and you can make the withdraws from any savings plan you wish, but the calculation of how much to w/d has to be made for the total of the federally qualified retirement plans and not just the ones from which you want to make withdraws. Also, since you are under 59 1/2, you will need to carry the w/ds for 5 years or until you are 59 1/2 ---!!!!!!(WHICH EVER IS LONGER)!!!!!!! Emphasis added to get attention.I second Lempi's advice to seek professional advice. I do not mean "financial planners" #$%&$#. Seek out a good CPA qualified in retirement issues. While the calcualtion is not overly complicated, it does carry large penalties for mistakes, and probably the most disturbing reason is that the IRS has not fully issued rules on this issue.I am a CPA, and I am pretty well knowledgable in retirement issues, but it took me a long time and a lot of research to understand the issues enough to make the calculation for myself (I had another CPA verify the calculation just to be safe).All said and done, Taking the early retirement was the best thing I ever did. Go for it and enjoy.LOL...TTFN...I am TiggerToo
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