Any one taking advantage of the rule of 55? IRS info https://www.irs.gov/taxtopics/tc558
7 replies (most recent on top)
Does rule of 55 also apply to pension?
I did. I retired at 57 and was able to take distributions from my 401K. It has to stay in place until 59 1/2.
I wonder how much money att really saves with all these forced retirements vs just letting the company run and let people do their job instead of finding creative ways of replacing them.
I am taking advantage of the Rule of 55 for a 401k. Was identified as surplus in July 2020 but was allowed to retire since I qualified for Modified Rule of 75. Got to keep the 6 month buyout too. Too young to tap an IRA (not 59.5) so taking "partial distributions" from the 401k until I reach 59.5. When your retired status shows up in NetBenefits, your withdrawal options change to show partial distributions available along with other options. As fyi I was legacy BellSouth management retiring from AT&T Marketing. Enjoying retired life and not working. Don't miss it at all. Have already rolled my pension (cash balance plan) into rollover IRA.
Yes, I agree with previous poster re Rule of 55 vs 72t.
That is different
google rule of 55 vs 72t
or see
https://www.irahelp.com/forum-post/61414-rule-55-vs-72t
or
https://www.forbes.com/advisor/retirement/rule-of-55-retirement/
rule of 55 applies to only 401k and 72t can withdraw from ira and 401k
I spoke to Fedelity and att 401k plan supports rule of 55
All you have to do to take advantage of that law is to take alike payments for the next 60 months from your 401K