What is the Rule of 55?
As many of us know, withdrawing money from our 401(k) or 403(b) before age 59 1/2, requires us to pay a PENALTY of 10%, in most cases.
However, when planning for retirement income, one strategy that may be used, is the Rule of 55. Here’s how it works.
If you’re between the ages of 55 and 59 1/2, and are laid off, fired, or quit your job, you may withdraw money from your 401(k) or 403(b).
As it is, rolling your money over to an IRA, may not always be the best strategy, if you’re between the ages of 55 and 59 1/2. This is yet another good reason to sit down and chat with the professionals at NewMarket Financial Advisors.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.