distributions from company plan
I have a new client that wishes to take a distribution from his company plan. His termination date is July 5th and his dob is 9/9/1953. He would have to wait until he reaches age 55 to take a distribution without penalty. Is that correct?
Thanks for your help.
Permalink Submitted by Alan Spross on Tue, 2008-06-17 00:06
No.
He can take the distribution on 7/6 which is the date following separation from service. The age 55 penalty exception includes such separations in or after the year the employee turns 55. Since this will be IN the year he turns 55 and after separation, he does not have to wait until Sept.