This article discusses the possibility of early retirement and the challenges associated with accessing 401(k) funds before the age of 59 and a half. It introduces the 'rule of 55,' which allows individuals to withdraw from their 401(k) without penalties if they leave their job during the year they turn 55 or later. Caution is advised, as this rule does not apply to funds from previous jobs or IRAs. Readers are encouraged to consult financial advisors to assess their readiness for retirement and avoid penalties.
If you leave your job during the calendar year in which you turn 55 or later, you can take a withdrawal from your 401(k) without a penalty.
Many individuals face the prospect of working into their late 60s due to insufficient savings, but retiring early may be feasible for those who have prepared.
The poster above may be perfectly fine to tap their 401(k) and not wait another five years, making early retirement possibly achievable.
Consulting a financial advisor before retiring early is crucial, as they can provide insight into your readiness and help you understand your financial situation.
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