(NewsNation) — Taking money out of a tax-deferred retirement plan like a 401(k) before the age of 59 ½ typically comes with a penalty, but an IRS provision known as the rule of 55 can help you avoid ...

Alternatives to the rule of 55 . If you don't meet the eligibility requirements for the rule of 55, here are other ways to avoid the 10% penalty. Take a SEPP. Also known as an IRS Section 72(t) ...

The rule of 55 isn’t the only way to avoid the 401(k) early withdrawal penalty. Other circumstances that allow you to avoid that additional 10% penalty include: • Total and permanent disability.

What Is the IRS Rule of 55 for a 401(k)? The rule of 55 states that you can withdraw funds from your current job’s 401(k) plan without the 10% tax penalty if you leave that job when you are age ...

How to Use Rule of 55 to Fund an Early Retirement. If you’re thinking about early retirement then chances are that you’ll need to take early withdrawals from your retirement account in order ...

As a general rule, if you withdraw funds before age 59 ½, you'll trigger an IRS tax penalty of 10%. The good news … Continue reading → The post What Is the Rule of 55 and How Does It Work ...

The rule of 55 is an IRS provision that allows you to withdraw from your 401(k) early without paying a penalty at a certain age. Here's how it works.