If everything goes perfectly I will be looking harder into this.....in about 8 years! I believe this is the one where you take you life expectancy, minus current age (55) and divide into your 401k amount. You then have to take that amount every year. If I remember right, this can be re-adjusted once you hit 59 1/2. Don't quote me on this, I have not looked into this for a long time, but that is my memory anyways.
That is a different one. I am still getting the details on this through our provider at work. I was hoping someone else on here already went through it. From what I can tell so far, there is no calculation for what you can take out and how long you need to continue to take that distribution with no up to age 59 1/2 or 5 year time period. I am also working to get our plan modified to allow for distributions other than lump sum.
Now that I think about it, it may have just been a general "what if I wanted to withdrawl from a standard IRA before 55 1/2" workaround. That was quite a few years ago I was looking at that even, it may not exist anymore.
Edit again, I read and I was thinking of the 72t rule. This is a quote I found in a Forbes article talking about the rule of 55.
“With 72t, you use IRS tables to decide how much to take each year if you’re under age 59 ½,” he says. “You won’t be stuck with the penalty, but you won’t have flexibility. You have to commit to taking those withdrawals for at least five years or until you’re 59 ½, whichever is greater.”
"With the rule of 55, you have more flexibility, Whitney says. As long as you meet the requirements, you can take as much or as little as you want from the 401(k) without committing to a set schedule."
https://www.forbes.com/advisor/retirement/rule-of-55-retirement/
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Topic: 401k Distributions - Rule of 55 Question (Read 438 times)