Old 401(k)

Working with an individual who is 57 and ready to retire. She has a couple of 401(k)s. She would only be able to take distributions prior to 59 1/2 from her current 401(k) that she would be separating from service from correct? Meaning the separation rule only applies to the current 401(k) and not an old 401(k) correct?



Correct. The age 55 separation penalty exception only applies to the plan from which the age 55+ separation occurs. 

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