403b Question
I have a question about avoiding the 10% on a 403b withdrawal. Must understanding is that to do so you must be age 55 when you retire but I have recently read that you can avoid the 10% penalty if you retire IN the tax year you turn age 55. So which is it? Age 55 when you retire and separate service or turn age 55 in the tax year you separate service or retire? Please be specific as I have a case pending based on this. Thanks for the help.
Permalink Submitted by mk foss on Tue, 2008-12-30 18:07
The code section says the distribution must occur after a separation from service and the recipient must attain age 55 in the year of separation. The exemption only applies to the plan from which the individual has separated from service.
I can see nothing more specific about 403b withdrawals.
Permalink Submitted by Stephen Rhodes on Wed, 2008-12-31 02:08
Thanks a million!