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

    Mar 14, 2007, 05:47 PM
    10% Penalty on IRA Withdrawal
    When I left my previous employer I rolled my 401k account into a rollover IRA. I made a withdrawal from the rollover IRA. I am over 55 and receive a retirement income from my previous employer. If this had been from the terminated 401k I would not have to pay the penalty but since it is from a rollover IRA I have to pay the penalty. What is the difference between the rollover IRA and the 401K? I don't understand why there is a penalty from the rollover IRA but not the 401k.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 18, 2007, 05:31 PM
    Some of the rules for IRAs are different that for 401Ks; some are the same.

    This is one of the different rules.
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