[Brad]

If I retire earlier in the year that I turn 55 but before my birthday towards the end of the year…does the Rule of 55 apply?

Ex: retire 1 Apr and birthday 1 Nov.

I’m planning to retire early, possibly before I turn 55, and I’m wondering about the specifics of the Rule of 55. Does this rule apply if I retire before reaching my 55th birthday, or do I need to be exactly 55 (or older) to take penalty-free withdrawals from my 401(k)?

I’ve heard different explanations and would appreciate insights from those familiar with how the rule works in real-life situations.

Are there any exceptions or conditions I should be aware of if I decide to retire earlier?

Thanks in advance for sharing your experiences and advice!

[Trevis]

I’m born in December and this question was very important for me. When you turn 55 and the year you turn 55 is about a year difference for me.

[Max]

Yes. It’s the calendar year you turn 55

[Michael]

The Rule of 55 is the calendar year you turn 55 or later. You can retire on Jan 1 if you turn 55 any time that calendar year.

[Jenny]

Yes, it’s the calendar year of the year you turn 55.

[Author]

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