It’s hard to get simpler than the 4% SWR strategy
I know, right? You’d think?
And yet hundreds, if not 1000’s of posts discussing, debating, clarifying – deja vu all over again.
To quote an esteemed poster from the past:
This thread has run it’s course.
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do you mainly derive your regular income from dividends? or do you elect to harvest some capital gains? how and when do you decide do capital gains?
“…- when you leave your employer in or after the year you turn 55 for that employer’s savings plans like 401(k)s or 403(b)s”
I have 401K from a past employer that I have not rolled over to IRA. They have allowed me to stay in the plan.
Can I take from that 401K when I am 55yol (next year)?
tj
Can I take from that 401K when I am 55yol (next year)?
Staying in a 401(k) plan does not mean that you are still working for the employer.
You can always take money out of prior employer’s 401(k)s. The problem is, since you’ve already stopped working for that employer and you won’t be 55 until next year, you didn’t leave the employer in or after the year you turned 55. Since that’s the case, you will be subject to a 10% penalty on your withdrawals, unless you use SEPP, which will require specific withdrawals until you are 59 1/2, or have withdrawn for at least 5 years, whichever is later.
Presuming you don’t want to use either of those options, you could roll your old 401(k) into your current employer’s plan, and withdraw from the current employer’s plan when you leave that employer in or after next year - the year you will turn 55.
AJ
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