Skip to main content
No. of Recommendations: 0
Greetings, 24, and welcome. You asked:

We were informed that as of May we will all be out of a job. I am 63 and have a choice of early retirement or to find another job soon. I have a modest pension and 401K. Can I get any money out of either of these funds for house repairs or do I have to roll both of them over into an IRA? I know I will have to pay tax, but do
I have to pay a penalty?

You are well over the age where an early withdrawal penalty no longer applies for distributions taken from either an employer's qualified retirement plan or a traditional IRA. Therefore, you may take as much as you wish (or as much as the plans allow) from those two retirement plans. As you mention, you will pay ordinary income tax on whatever you take, but no penalty applies.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.