Q: Is it true that 401k or IRA withdrawals can begin at age 55 without penalty? I plan to retire with a pension at age 55.
A: Thanks for your question… You are correct. You can retire at age 55 and start withdrawing assets from your IRA under section 72-T of the IRS tax code. This section 72-T states that you must withdraw substantially equal periodic payments over a five year period. Once this time requirement is met you are able to decrease or increase your withdrawals without penalty. I have included the IRS website link below for you. If you need us, we offer a free one hour consultation.