Richard (Caller)
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Hi, George.
Hi, Rachel.
How are you?
Yes, my question has to do with the rule of 55.
I turned 55 this year, and I was wondering how I can access my 401k money without paying a penalty.
I currently have an advisor, and his path was to, with my provider, have to take a lump sum.
I can't take distributions from it.
So he suggested taking the lump sum out, putting a portion of it into an IRA, which I wouldn't touch to 59 1⁄2,
And then the other portion would go into a mutual fund where that's where I would get my money until I'm 59 and a half.
So I was wondering if I did that, will I incur any penalties?
Because I told him I don't want a penalty.
He said, no, there will be no penalty if you do it this way.
My other question is, if that is, will I incur a penalty with that?
Will I then have to do what's called a 72T without incurring a penalty?
No, I have not.
Correct.
Right.
Yeah, that's his suggestion.
I'm not going to make sure.
In my 401k, I currently have about $1.1 million.