Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Not just in the law, but the "Plan Document" MUST be written to accommodate under/coupled with ER (Early Retirement) provisions. Some do, most don't. And the law changed the exception permitted with OBRA 93, tho the annuity calculated payment form is still a required option, especially today.

"You can avoid the 10% early withdrawal penalty by taking funds from your 401k (or any qualified pension plan) in equal installments over a certain period of time. Specifically, the law says that if the distrubtion is part of a scheduled series of substantially equal periodic payments made over the life expectancy of the participant and the beneficiary, the 10% penalty will be eliminated. However, once this annuity form of payment is elected, it cannot be switched until five years have elapsed or until age 59 1/2- whichever is longer." "

KBM (arcane details R us)
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.