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Accounting, Payroll & Pension Issues/401k withdrawal at 55 y/o
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Question
I left the company I worked for in 06/07. I was 54 at the time. I am still in the companies 401k plan. If I make a withdrawal in 2008, which is the year I turn 55, will I be subject to the 10% early withdrawal penalty
Sorry for the delay in responding.
The Internal Revenue Code states that the 10% excise tax on early distributions does not apply when the distribution is "made to an employee after separation from service after attainment of age 55". Reading this literally I must conclude that the distribution in 2008 will be subject to the excise tax. Wish I could give you a better answer.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Allen
Expertise
Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience
Over 35years experience in the pension field
Organizations
Various actuarial organizations
Education/Credentials
MBA and various professional certifications
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