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Retire as early as 55? The IRS Rule of 55 explained and how I am using it to fund early retirement

Frames Retire as early as 55? The IRS Rule of 55 explained and how I am using it to fund early retirement

Description Retire as early as 55? The IRS Rule of 55 explained and how I am using it to fund early retirement

Comments Retire as early as 55? The IRS Rule of 55 explained and how I am using it to fund early retirement

Great information! Thanks for sharing!brBtw, do you have to work for the company for at least ten years before you leave your job and use the rule 55? Comment from : @shinnyvong1205

I’ve been looking for a simple explanation of this question for a while! I have an extra benefit which changes it from 55 to 50 due to my career in law enforcement The disappointing part is I need to leave it with my employer (the State of Florida) I really wanted to migrate my entire account over to Fidelity and use the Rule of 50 but apparently it only works if you leave it in your employer’s plan That’s a bummer! Comment from : @FloridaTwoWheelAdventures

Never ever count on having SS now-trump and elon will abolish it Comment from : @davedeboy5726

I hate how the government taxes you on money you’ve already paid tax on and how you can get penalized for taking your money out early! Comment from : @Curtis7391-t8q

I was let go from my job of 24 years the year I turned 55 in 2022 The rule of 55 saved me from a crisis until I was able to find employment again months later I have since rolled over my 401K into an IRA, but left a small amount there "just in case" I needed it I only heard about the rule of 55 after some online digging after I was let go No one I spoke to had ever heard of this rule Comment from : @FunnyCTgirl

Great video! I was laid off in year 56 and have been researching the Rule of 55 You stated you are on COBRA at the moment so I assume you are within 18 months of leaving your recent employer? What is your plan when COBRA runs out? I would love to see a video on this Comment from : @straitjacketstudios

WTF! The bird noises You are retired film this again Comment from : @huediffusion3813

Used the "Rule of 55" to retire at 58 and withdraw enough to live for the next year and a half 👍 Comment from : @nmccw3245

I would not recommend this technique It may make sense if you use the funds to pay off consumer debt, as long as you don't go back into consumer debt This can reduce your monthly expenses and increase your cash flow I would do it in order to purchase income producing real estate or an existing business, like a liquor store, that will pay you more over the next few years This would be a way to increase income and create some small business tax deductions to offset other income as well Leaving it alone is the best strategy Comment from : @anthonydooley3616

Why 20 for federal taxes? Federal tax rate is 12 up to $48k on single filer and double that for married Seems excessive to withhold that much unless your withdrawals are going to be much higher? Comment from : @keekeefries6298

What if you retire earlier than 55? Comment from : @paulschaaf8880

I Retired three years ago with the Rule of 55 - no regrets and I am surprised at how many people I talk to never heard of it!!! Life is SHORT retire as soon as you can! Comment from : @StevesRealReviews

Thank you for sharing this useful 401k rule 👍 Comment from : @huy3967

I have read information on this Rule of 55 , planning to do the same in 3 years But before doing that you must also check with the SSA to make sure you have wrkd over 35 yrs bcs your retirement benefits will be calculated on the highest earning years If you plan to retire at 62 I have done my research with ssa I plan to leave abroad Can't wait 3 more years Comment from : @nixonarango6364

Thanks for the video! Follow-up question on the rollover event(s) Before leaving my last job, what if I rolled over previous jobs' 401ks? Comment from : @carlbroker

is that Rule 55 only applicable to Employer's contribution? how about your own pretaxed contribution? Usually both Employers matching and your own contribution went to the same 401K account at the same time Comment from : @jkbc

I’m 49…gotta make it to work just 5 more years Thanks for the video Comment from : @Jason_NSS

I turn 55 in December 2025, but wait four months into 2026, can I still do this? Comment from : @mattlawson4727

I was also able to retire using this method My company also allowed me to roll-in some pre-existing 401k money from other jobs so that I had it all within their plan This gave me the numbers to allow me to cover expenses between 55 and SS at 68 Yes, I did say 68 per my retirement plan in New Retirement Gives me the best income and tax outcome Glad to see more content about this available because it really is a great option for those that have been willing and able to contribute to their retirement over the last 3 decades or so Comment from : @Jamie-dz8dg

Can you take a new job with a new 401k? Comment from : @lionmangolf

Don't forget about public safety workers They have a rule of 50 that applies to 401k's These don't apply to IRA's, but are great for 401k's Comment from : @papasquat355

Crucial question that I have: Can you roll over other IRAs or 401ks from previous jobs into your current employer 401k plan so as to be able to access those funds early at age 55 using the rule of 55? Or are those funds unable to be tapped no matter what until age 595 because they aren't with your current employer? Comment from : @thundersnow93

My plan doesn't allow it Booo Comment from : @dougsowell

I’m with fidelity also and retired on my 55th birthday Best move I ever did Thank you rule 55 plan Also did a NUA to access my money to live on , and the rest in an IRA til I’m 59 1/2 Comment from : @brucenelson8784

Yes! RO55 made my transition from laid off to retired possible I am also with Fidelity, and we rolled 75 to a Roth and left 25 in the employer sponsored plan, in case I need to access it before 59 1/2 brbrSo glad YouTube suggested your channel ❤ Comment from : @AgingOnYourTerms

I'm so glad the government "allows" us to access OUR money Comment from : @Execute_Order_66_DO_IT

Folks, make sure you check with your company’s HR dept before doing anything!! Also, while the RO55 is good, I recommend you build up a bridge account(s) until 595 instead of dipping into your retirement accounts Let them continue to grow Comment from : @LIWYMA

If the company makes to take a lump sum, couldn’t you buy an annuity to last 4 years and roll the rest into an IRA? Comment from : @Jp-mn1rq

If you have both a traditional 401k and a Roth 401k with separate balances Can you rule of 55 keep just the traditional 401k with the employer and withdrawal, and take the Roth 401k and roll it into an Roth IRA? I know you have to keep it at your employer, but if I'm not withdrawing from Roth 401k can I roll that out and just withdraw from the traditional 401k kept at my employer? Anyone know? Comment from : @dogegamer3288

can you take out the entire amount with the rule of 55 or withdraws only? Comment from : @MrMulto

Turning 60 and retiring this fall - and cant wait Thanks for the 411 Comment from : @douglash2630

You should consider mega backdoor roth to reduce future tax Comment from : @trueposition6329

Used last year and got a good tax refund this yearbrNo debt, part time job, small pension, don’t live large Comment from : @lmen255

Retired September 2023 at 55 1/2 using the rule of 55 for my 401K and 72t for my wife's 401k, and Roth IRA's that are over 5 years old 6 months and loving it Comment from : @STF68

Another good reason to always roll prior plans into your current company plan Comment from : @July41776

This proves why we shouldn't automatically do anything, especially not automatically roll your 401K into an IRA Rule of 55 saved me During an unexpected medical leave during which my entire work group got laid off, I was happy to find the rule of 55 I was 55 that year A year earlier would have been tough Luckily my employer's 401K allowed it, and the plan was decent and didn't have much restrictions They had some weird rules about withdrawals but it worked out ok Comment from : @lovinglife3954

Did you receive a letter that was actually signed or just an email stating your company had the rule of 55 and you could use it? What kind of letter did you ask for and receive? Thank you Comment from : @retireearlywithme

I’m turning 55 in 2025 and plan on using the full of 55 I confirmed with Fidelity on the phone and in person After watching your video and reading the comments it sounds like I need to get it in writing I did read my companies 401k and the Rule of 55 is mentioned ( just not called the rule of 55) I’ll look tomorrow and post again with the exact verbiage I just found out about the full a few months ago I was so excited and still am I hope to join u in early retirement next year Comment from : @retireearlywithme

Current company 401k just hit $1M this week and I turn 55 this year It only took 13 years Don’t want to be laid off, but no longer fear it Comment from : @edhcb9359

Hi I’m 565 and have a TSP as a federal employee Are you saying I just have to pay the 20 percent and I can keep the rest? Should I pay off my debts with the money? Comment from : @itguru2037

I did it at 54 in the year I turned 55 with no penalty drawing from my company 457b Comment from : @hardcor1313

I used this and it's fantastic! Working a part-time job, I love I have more in my 401k than when I started drawing down a couple of years ago I'm also with Fidelity Comment from : @bobbyt7448

Wow…great information! I’m assuming our TSP accounts are considered 401K accounts🤷🏻‍♀️ Comment from : @travelingexpats

You are spot on young fella I have not had to dip into my 401K yet But I will if I have too I am 56 and still able to live without it so far I am going to stay in retirement Hell, life is too short I did the math, and I can with draw for 30 years at a set amount this is without any gains I thought the bird was outside my window lololololol Comment from : @SEEKERONE1

Do you have to leave your job? Can you stay at your job and still get the money with NO penalty? Comment from : @Westcoastguy

My plan has a rule of 55 in the literature, but it states "when you reach the age of 55", not the calendar year when you will turn 55 Sounds like plans can kind of pick and choose on this, so i am not sure? I am not planning on leaving the very date I am eligible (3 years), but you never know how things could change so it is good to know I can ask the question about turning 55 or the calendar year you turn 55 and if there is a difference Comment from : @loborocket

We wish we had this provision in our current 401K, it would be a no brainer for us! It's unfortunate that not all 401Ks providers offer this We instead are building a "bridge" account to be able to retire early, it's a lot more work but it's worth it if you want to retire early Comment from : @OurRetireEarlyJourney

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