Anybody able to use this to access their 401k before 59.5 years after being let go?
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Those who did it, were you forced to cash out the entire 401K for Dell or was it via an amount you controlled (not talking rule 72(t) here).
I did. It has worked well for me.
The "Rule of 55" allows individuals to withdraw money from their 401(k) or other qualified retirement plans without the 10% early withdrawal penalty if they leave their job in or after the year they turn 55. This rule can be advantageous for those retiring early but still need access to funds before the standard age of 59 1/2.
Converting into a fixed index annuity is the best action for your age and size of 401k. It's what I did with my Dell / Fidelity account. They gave me a 20% bonus which helped make up for the loss in recent years. If you are in texas, reply to this and I'll send you a presentation.
I didn't exercise it but spoke with a Fidelity Net Benefits support rep who walked me through all my options. The biggest obstacle was while there was no penalty from Dell, I would have to pay taxes on the money. For me I found a better option was a ROTH backdoor conversion. Paid the taxes and then everything going forward is tax-free.
Always best to check with a CPA or Tax Advisor as each situation is different.
For the curious: https://www.fidelity.com/learning-center/personal-finance/what-is-rule-of-55
I really don’t understand the question