Can I withdraw from my 401(k) if I'm 55?

This is where the rule of 55 comes in. If you turn 55 (or older) during the calendar year you lose or leave your job, you can begin taking distributions from your 401 (k) without paying the early withdrawal penalty. However, you must still pay taxes on your withdrawals.

What is the rule of 55 401(k) & 403(b)?

To use the rule of 55, you’ll need to: Be at least age 55 or older. Have a 401 (k) or 403 (b) that allows rule of 55 withdrawals. Have left your employer voluntarily or involuntarily in the year you turn 55 or later. Leave your funds in an active 401 (k) or 403 (b) plan.

Does the rule of 55 work with a 401(k)?

However, you must still pay taxes on your withdrawals. Not only does the rule of 55 work with a 401 (k), but it can also apply to other qualified retirement plans, such as a 403 (b) plan. If you have a retirement plan from your employer, you might be able to take advantage of this rule.