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| mro55 |
 Posted: Sun May 01, 2005 1:59 pm Post subject: 401k early withdrawals |
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New Poster
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If I retire at age 55. do I have to pay a penality for withdrawing out of my 401k plan before age 59 1/2 ? Or is there some way to avoid this penality?
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| thrilla |
| Posted: Mon May 02, 2005 3:53 am Post subject: |
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Investing Sr. Associate
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| There really is no way to avoid the penalty that I know of. I know that you can take loans and do other such things with the 401k, but no real way around taking early withdrawls without penalties. |
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| noksagt |
| Posted: Mon May 02, 2005 6:40 am Post subject: |
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Member of the Month! March
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| You need to stay employed to take out a loan from your 401(k). The best option is to have enough in your other accounts to live off of and avoid early withdrawal. Otherwise, look into 72(t)s. This allows you to take out a fixed amount each year through your life expectancy without the 10% penalty. |
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