(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 ...

The rule of 55 is an IRS provision that allows you to withdraw money from your 401(k) ... Sign up for Kiplinger's six-week series, Invest for Retirement. Read More about Early Retirement.

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 ...

If you take an early withdrawal from a 401(k) or 403(b) before age 59 1/2 you will generally have to pay a 10% early withdrawal penalty.However, the IRS has established the rule of 55, which ...

The rule of 55 allows penalty-free withdrawals from a 401(k) and 403(b) if you leave a job during or after the calendar year you turn age 55. This is an exception to the IRS rule that levies a 10% ...

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 Internal Revenue Service has a rule that states individuals can withdraw from a 401(k) plan if they’ve retired, quit or been fired at 55 years old — that doesn’t necessarily mean they ...

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.