[zigmeisterxiv]

On this topic it seems a little known fact is if you leave your job (quit OR fired) at age 55 or older, you may make withdrawals from your 401k at that firm WITH NO 10% PENALTY!

I state this not to advocate withdrawals but to make people aware they may be paying a penalty FOR NO REASON!!!

I even had this argument with this CPA broad in a bar. She kept saying no.. no.. no ..

So please refer to IRS Publication 575, and Form 5329 Instructions (line 2), to confirm this.

It does not apply to IRA’s and if your former employer’s plan made you roll it into one, you are screwed ... sorry.

Thanks for reading ...

[ponygirl]

Can you explain for me the difference between a 401k and an IRA?

[sergeantdave]

“So please refer to IRS Publication 575, and Form 5329 Instructions (line 2), to confirm this.”

Appreciate your concern, but we’re heading to a situation where Publication 575 won’t matter. Pretty soon it’s who pulls their weapon the fastest and who shoots the straightest.

[suijuris]

So please refer to IRS Publication 575, and Form 5329 Instructions (line 2), to confirm this. It does not apply to IRA’s and if your former employer’s plan made you roll it into one, you are screwed ... sorry.

Do you know if it applies to a SEP account? I have some money in an account that I set up when I was self employed. I never rolled it over into my 401K that I have with my current employer. I have more than enough in the SEP to put a big down payment on a farm I have been thinking about.

[taildragger]

If my memory is correct it is called SEPP, Substantially Equal Periotic payments, another term to learn is 72t.....

Go here: http://72t.net/Home

And here: http://www.investopedia.com/terms/s/sepp.asp

On the SEPP click down below on the rules....