[Jennifer]

Could someone please explain the “Rule of 55” to me? Can I really draw from my 401k with no penalty if I retire from the company it is through at age 55?

I’d like to know if this rule applies to individuals looking to access their retirement funds before the traditional retirement age of 59½ without incurring the usual early withdrawal penalties.

If you have experience with this or have consulted a financial advisor regarding the Rule of 55, your insights would be appreciated.

Are there specific requirements or conditions one should be aware of before attempting to use this rule?

I’m particularly interested in hearing from those who’ve successfully utilized this option or from financial experts familiar with the nuances of 401k early withdrawals.”

[Zach]

I believe that you have to actually retire and you can’t work and get a paycheck somewhere else.

Not sure what would happen if you decided to get a job somewhere else while you’re drawing from your 401k as a retired person.

[Keith]

If your plan and your employer allows for it yes

[John]

It is not just 55+ either. If you retire in the calendar year you will be turning 55 you can withdraw interest

[Author]

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