What is the Rule of 55?
The IRS Rule of 55 lets you withdraw from your current employer's 401(k) without the 10% early withdrawal penalty if you separate from service in or after the year you turn 55. Doesn't apply to IRAs or to 401(k)s from previous employers — only your most recent.
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The IRS Rule of 55 lets you withdraw from your current employer's 401(k) without the 10% early withdrawal penalty if you separate from service in or after the year you turn 55. Doesn't apply to IRAs or to 401(k)s from previous employers — only your most recent. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.
For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.