Getting Around the 10 Percent Early Withdrawal Penalty
June 5th, 2009 | 
Author: Very few people know about this, but it’s true.
If you’re fifty-five or older in the year of retirement from a particular company, you can withdraw whatever you like from what’s known as a qualified employer retirement account without any penalty whatever.
You will pay tax on this money as if it were ordinary income. The tax will be withheld from your withdrawal off the top in the form of a 20 percent withholding tax. You’ll get a refund of this withholding tax if when you file your return you owe less than was withheld. If you owe more, you’ll have to pay the balance.
This holds true only for employer-sponsored retirement plans such as the 401(k). If you take your money out of your 401(k) and put it into, for example, an IRA rollovet this rule won’t apply to you.
Posted in 
Tags: