early distribution from simple plan
I have a client who is retiring at age 56 and has a simple plan with a former employer, can he take distributions from the plan without the 10% penalty if it remains in the plan.
I have a client who is retiring at age 56 and has a simple plan with a former employer, can he take distributions from the plan without the 10% penalty if it remains in the plan.
Permalink Submitted by Alan Spross on Thu, 2008-09-04 22:36
No. The age 55 separation exception does not apply to IRAs of any type.
Although relatively rare, it is possible to have a SIMPLE 401k plan and if the client is a participant in one of those, then the exception would apply.