mrf0rd,
At retirement (55), I plan on moving all but $800k out to an IRA.
As far as I know, rule of 55 only apply to 401K. Not to IRA. As soon as you move the money into IRA, you are subjected to tax penalty for withdrawing before 59 1/2 years old. So, how is this supposed to work?
Do you really want to pay taxes on 800K of income in one year?
And, depending on the employer, there are restriction on how your move the money out of 401K with rule of 55. Some only allowed one lump sum. Other, equal amount. I am not sure any amount at any time is generally supported.
KlangFool
Statistics: Posted by KlangFool — Sun Jan 28, 2024 9:45 am — Replies 13 — Views 1635