Benefits usage, and Rule of 55

If you are displaced, don't forget to take advantage of things like vision insurance, dental insurance, etc.

Also, if over 55, look into 'Rule of 55'. 'Separation from Service' in IRS speak. It allows anyone 55 or older to withdraw funds from retirement account with no penalty. You will still need to pay taxes on any non-taxed (401k) funds, but if you have pre-taxed (Roth) funds, there will be no Fed tax. You will need to look into your state situation. For example, Iowa has no tax on retirement fund income.

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#Benefits #Retirement #RetirementPlan #Severance

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keep the money in 401k as long as possible. from 55 to 67 it should double. Have an emergency fund to help you.

@a1 Yes, they do!

You can take lump sum or installments. The main caveat is that it has to be from your WF (or independent) retirement account you had when terminated. Or quit. It's not just for those laid-off/fired.

I am the OP. And, yes, I am doing it. I've joked for years 'What if I die before I get to spend my money?'. So I am going to use funds to pay my mortgage. My rate of return is high enough to keep money coming in as I put the funds towards my house. No, you do not have to spend the money on housing, medical, etc. I could start taking vacations if I wanted.

Haven’t checked the docs yet, but does Empower allow for partial distributions after 55? I know that the IRS rule allows for post-55 access, but the plan may make you take all at once. Anyone know?

Thread regarding Wells Fargo & Co. layoffs

Benefits usage, and Rule of 55

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