Skip to main content
No. of Recommendations: 0
There are two ways to play the fool:

§72(t)(2)(A)(v) allows unlimited & varying withdrawals from your 401(k) if you retire from your employer during the same year in which you turn 55 or older. In this case you money must stay in the 401(k) & cannot be rolled to an IRA (at least until age 59 1/2) & needs a cooperative plan administrator who will give you withdrawals when you need them.

§72(t)(2)(A)(iv) provides for "substantially equal periodic payments" of which there are three approved methods that once commenced must continue until the later of 5 years or your attaining age 59 1/2. The rules herer are much tougher than above but can be commenced at any age.

Both (v) & (iv) above avoid the 10% surtax but regualr income tax is still due.

Visit the Retire Early Home Page for lots of detail on both of these subjects.

TheBadger
Print the post  

Announcements

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.