How to Access Your 401(k) Penalty-Free at 55 - Heather Schreiber

Heather Schreiber breaks down the often-overlooked "Age 55 Rule," which allows individuals who separate from their employer at age 55 or later to withdraw from their 401(k) or 403(b) without incurring the typical 10% early withdrawal penalty. She clarifies the critical conditions that must be met, such as ensuring funds remain in the employer-sponsored plan rather than rolling them into an IRA, which would eliminate this exception. The discussion also covers tax implications, including the 20% mandatory withholding, and common mistakes people make when panicking and rolling over funds prematurely.