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

    Jan 30, 2008, 03:30 PM
    401K early withdrawal
    Hi,
    I am over 55 and left my job this past year to start up a new business where I am not taking any salary. My question is whether I qualify for a penalty free withdrawal from my 401K at my former employer?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jan 30, 2008, 03:52 PM
    Yes you do qualify for a penaly-free withdrawal - as long as you have separated from service in or after the year you turned 55. Since you left your job last year, and you are now over 55 I assume that last year you were at least 55. You will have to pay regular income tax on the withdrawals, of course.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 31, 2008, 01:49 PM
    Agree!
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