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    sandilobbezoo's Avatar
    sandilobbezoo Posts: 1, Reputation: 1
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    #1

    Jan 22, 2009, 06:48 AM
    One Time Draw on 401K
    I had heard that when you turn 55 you can make a one time draw on your 401K without any penalties. Is this correct??
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Jan 22, 2009, 07:44 AM

    Partially. If you are over 55, you can get the 10% penalty waived is your plan permits withdrawals. You will still be subject to paying income taxes on the additional income for the year.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Jan 22, 2009, 10:36 AM

    If you have been separated from service from the company in or after the year you turn 55, then yes - you can take withdrawals without having to pay the 10% penalty.
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