separation from service after 55 then works for new employer
Employee attains age 55 and subsequently is terminated as company is dissolved. Employee desires to take total (100%) distribution from a qualified plan.
Employee obtains work from a new employer, unrelated to his previous employment. Does the new employment change the exception that the distribution is not subject to the 10% penalty?
Thank you. Bob
Permalink Submitted by Alan Spross on Tue, 2012-09-18 22:35
No, the new employment does not change the penalty exception for distributions from the old plan. The age 55 exception still applies. Employee can also take a partial penalty free distribution and roll over the rest.