[badwolf48]

My factory is closing the doors this yr and moving to mexico, I will be 55, in feb 2010.
Can I leave my 401k alone until I'm 55 and avoid any penalities. Are there any rules for factorys that are moving out of country.

[ebaines]

You should be able to leave your 401(k) as is until you start to take withdrawals. But to avoid penalties you can't start withdrawals until age 59-1/2. It would be age 55 if you were to be separated from service in the year you turn 55, but it sounds from your post like you will only be 54 in 2009. Only other option is to start a series of substantially equal withdrawals based on your life expectancy - this is known as a section 72(t) withdrawal. Otherwise if you start withdrawing prior to age 59-1/2 you will owe the 10% early withdrawal penalty.