This only applies if you are 55 or older the year you are laid off. I am a year shy of that
8 replies (most recent on top)
@a3 has nothing to do with pension. It’s a tax rule for 401k/IRA money
@a5 been through a RIF- volunteered as I was over 55-I know what I’m talking about- just sharing info and also advised to talk with an advisor
Financial advise from an anonymous source.... perfect.
Definitely talk with an advisor!
If you move all money into IRA- you need to take same amount of distributions till age 59 1/2 with rule of 55,without penalty
if you leave in 401k- you can take out whatever you want when you want it - without 10% penalty with rule of 55
definitely talk with an advisor
@OP Is that the rule for folks with a legacy pension?
Good point. DONT transfer your 401k into an IRA at age 55. Huge misconception about this rule. Talk to a financial advisor. If you leave it in the 401k , you can withdraw from your 401k every year without tax penalty after age 55. If you move it to an IRA though , you’ll have to wait til 59 1/2.
@OP ?