72t
I understand that if a person retires at age 55, qualified money from a Company plan can be taken as a series of payments without penalty and not have to be a 72t plan. Is a 401k considered a company plan or does that rollover have to be set up as a 72t?
Permalink Submitted by Al Fry on Thu, 2007-12-27 19:33
It is a Qualified Retirement Plan with the Company. The penalty-free distributions are only if it stays as a 401(k). Some plans require a full distribution within a certain period, at which time it could go into an IRA, hopefully after age 59 1/2, o/w a 72(t) (or annuitization from the 401(k)) would have to be used.