I was reading online that if you were 55 prior to the separation date you can actually take withdrawals from your GM 401K plan before turning 59 1/2 without paying the extra 10% penalty for early withdrawals. Need to check with Fidelity to see if this is true.
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The age 55 Rule for withdrawals from your 401(k) without penalty - provided you have separated service from that employer, IS NOT the same thing as the 72t rule. The age 55 rule is far more flexible. The 72t rule requires you to pre-establish a schedule identifying when and how much you will be withdrawing, and to submit that schedule to the IRS. The two rules are two different means to withdraw money without penalty prior to age 59-1/2, although taxes are still due. Penalty Free but not Tax Free.
I empathize with those who were victims of GM's Valentine's Day M---acre.
Its called a 72-t. No penalty, but you need to follow the rules, otherwise, penalties can arise. Here's some information:
http://abovethecanopy.us/the-ultimate-guide-to-early-retirement-with-72t-distributions/
Also, meet with a qualified tax consultant or financial planner. A loan is one way to get money out of a 401-k before 59.5 yrs. but it needs to be paid back.
if you turn 55 on the year of separation or quiting, you can withdraw from 401k with no penalty assuming the 401k was with the company you quit and not previous company
Yes you can do this without penalty.
It is called IRS rule of 55.
just don't do it until 59 1/2. avoid penalties. you can take out a loan and repay but don't withdraw.
Agreed, only if you have no other options.
Yes, this is true but not ideal if you are in your late 50s. Try to use that as a last resort.