No early withdrawal tax penalty on 401(k) for retiree ? Business ...

Q. I am age 57 and plan to retire this year. Do I have to wait 2? years to take 401(k) withdrawals? L.T., Little Egg Harbor, N.J.

A. No. The general rule says you must pay a 10% tax penalty, in addition to regular income tax, if you take the money before age 59?. However, there are several exceptions to the 10% penalty, including one for withdrawals taken by someone who ?separates from service? and is at least 55 years old (as opposed to 59?). You apparently qualify for the age-55 exception.

Note: The age-55 exception to the 10% penalty is not available for early IRA withdrawals (before age 59?).

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/32987/no-early-withdrawal-tax-penalty-on-401k-for-retiree "

Source: http://www.businessmanagementdaily.com/32987/no-early-withdrawal-tax-penalty-on-401k-for-retiree

meghan mccain wilson chandler bristol motor speedway puerto rico prometheus grand canyon skywalk tonga