Rule of 55: Penalty-Free 401(k) Withdrawals Before 59 1/2
Access your retirement savings early without paying the 10% penalty
The Rule of 55 lets you withdraw from your 401(k) penalty-free if you separate from service during or after the year you turn 55. Public safety workers qualify at age 50 under SECURE 2.0.
Key Requirements
- Age: 55 or older in the year of separation (50 for public safety)
- Separation: Must leave that employer (quit, fired, or retired)
- Same plan: Only applies to the 401(k) at the employer you left
- Do NOT roll over: Moving to an IRA eliminates Rule of 55 access