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Brown Cafe UPS Forum
UPS Retirement Topics
How big is your 401k?
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<blockquote data-quote="Ms.PacMan" data-source="post: 1412019" data-attributes="member: 4656"><p>One more thing. If you work until the year you turn 55, you can start withdrawing on your 401k immediately without penalty.</p><p></p><p>Our plan allows distributions at any time following separation of service <a href="http://www3.prudential.com/email/retirement/IMFPWeb/hosted_websites/teamsterups/media/Summary_plan_Description.pdf" target="_blank">http://www3.prudential.com/email/retirement/IMFPWeb/hosted_websites/teamsterups/media/Summary_plan_Description.pdf</a> pg19</p><p></p><p>and the IRS considers separation of service in the year you turn 55 an exception to the 10% penalty for withdrawals before age 59 1/2.</p><p><strong>Tax on early distributions</strong>. If a distribution is made to a participant before he or she reaches age 59½, the participant may be liable for a 10% additional tax on the distribution. This tax applies to the amount received that the employee must include in income.</p><p></p><p>Exceptions. The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances:</p><ul> <li data-xf-list-type="ul">Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55. <br /> <br /> </li> </ul></blockquote><p></p>
[QUOTE="Ms.PacMan, post: 1412019, member: 4656"] One more thing. If you work until the year you turn 55, you can start withdrawing on your 401k immediately without penalty. Our plan allows distributions at any time following separation of service [URL]http://www3.prudential.com/email/retirement/IMFPWeb/hosted_websites/teamsterups/media/Summary_plan_Description.pdf[/URL] pg19 and the IRS considers separation of service in the year you turn 55 an exception to the 10% penalty for withdrawals before age 59 1/2. [B]Tax on early distributions[/B]. If a distribution is made to a participant before he or she reaches age 59½, the participant may be liable for a 10% additional tax on the distribution. This tax applies to the amount received that the employee must include in income. Exceptions. The 10% tax will not apply if distributions before age 59½ are made in any of the following circumstances: [LIST] [*]Made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55. [/LIST] [/QUOTE]
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How big is your 401k?
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