Rule of 55 401K Withdrawal

[Shawn Fletcher]

Hello,

Can anyone recommend a financial advisor who really knows the in/outs of "the Rule of 55" for early 401k withdrawals"?

Key Points

• The Rule of 55 is a loophole that allows for early withdrawals from workplace retirement accounts.
• You must be 55 or older in the year you leave your job (for any reason) to qualify for early withdrawals from a 401 (k) or 403 (b).
• If you qualify, you can tap your current employer-sponsored account only, not previous retirement accounts or IRAs.

I have a solo 401K and I'm presently working as a contractor (1099 employee). This position may be coming to an end prior to the end of 2023. I'm presently 57, and my understanding is that I can access my current 401K if I'm terminated or if I quit.  I'd like to confirm this, and also understand what happens if I was to start a new job months later.

Thanks for your consideration.

Kind regards,

Shawn