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Mustbenuts wrote: "If you are 55 years of age and separated from service, you can withdraw from your 401K without penalty. Roll the 401K into a special rollover IRA and don't comingle before 59 1/2 years of age."

Please explain your comments further. I understand that if you separate age 55 or over, you can withdraw from 401K without 10% penalty (as long as your 401K holder allows it).

But I thought that you lost that penalty protection if you rolled that 401K into an IRA, and if you withdrew from that IRA before 59-1/2, you would be hit with the 10% penalty.

Anyone out there for sure on this? Just want to clarify. Thanks.
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