52 Mondays

[CautionToTheWind]

My condolences mayble! Let the emotions flow should they surface; it's healthier!

 

[Jim Ragsdale]

Today is my 21st anniversary at my job, and my plan is to stick around for one more.

My anniversary date brings with it a fresh 4 weeks of vacation which rolls over if I don't use it, so one year from now I could have 8+ weeks of pay to cushion the transition.  I'll also turn 55 next year, so I'll be able to cash out my 401(k) without losing 10% off the top  (taxes yes, but no early withdrawal penalty).

52 more Mondays and I'm out   Suddenly the countdown seems real.

You might want to rethink that "no withdrawal pentaly" idea.  The normal age is 59 1/2 to be able to withdraw penalty free.  THere is a provision for monthly withdrawals without penalty but there is a calculation (Rule 72T) done to determine the amount.  That amount is not up to you, its up to the calculation.  Rule 72T is where you should go google.  I would venture to say most people who rely on Rule 72T distributions find the amount to be less than they wanted to withdraw. 

There are other exceptions to the penalty not involving Rule 72T and you may fall into one of those (disability for example), but plain old retirement isn't one of them.

 

[mayble]

34
Or less.  Lately I've been thinking Jan 1 may be the target, if I even make it that far.  Recent events have me adjusting my priorities and recalculating my needs.

There are other exceptions to the penalty not involving Rule 72T and you may fall into one of those (disability for example), but plain old retirement isn't one of them.

'Tis still my understanding that leaving the job  at or after age 55 nullifies the 10% penalty, but I'd be happy to look at evidence to the contrary if your googling turns up something mine has not.
I'm talking 401(k) here, not an IRA.  Different rules.

 

[Putts]

I bonded with family that I've had virtually no relationship with for years, and became very close to the rest.  The standard "We should get together sometime" turned into "When are you coming to visit?
*snip*
I think this van thing is going to work out very well for me.

I spent a good deal of time with my dad before he passed. It's now one of my most cherished memories. So glad your mom's passing allowed your family to rekindle its love. Take care. RIP Mom.

 

[Jim Ragsdale]

34
Or less.  Lately I've been thinking Jan 1 may be the target, if I even make it that far.  Recent events have me adjusting my priorities and recalculating my needs.


'Tis still my understanding that leaving the job  at or after age 55 nullifies the 10% penalty, but I'd be happy to look at evidence to the contrary if your googling turns up something mine has not.
I'm talking 401(k) here, not an IRA.  Different rules.

You got me on that one.  I found where you can take distributions if you retire at age 55 penalty free under certain circumstances. 

I  did find some caveats:

1) It wasn't clear to me that the 10% penalty exemption applied if the 401(k) was from a previous company if you left a 401(k) at a former employer.  It seems it only applied to the current employer and current 401(k).  I was confused about whether if the previous company 401(k) was rolled into the last one (the part from the previous company), would the exemption apply to all of it or just the contributions and earnings from the current 401(k) portion.  How would you know which part was current company and which part was previous company contributions. 

"if you still have money in the plan of a former employer and assuming you weren't at least age 55 when you left that employer, you'll have to wait until age 59½ to start taking withdrawals without penalty. Better yet, get any old 401k's rolled into your current 401k before you retire from your current job so that you will have access to these funds penalty free."
I found that here:  http://www.401khelpcenter.com/401k_education/Early_Dist_Options.html#.WWQb7-mQzcs

2) There is a mandatory 20% withholding on 401(k) accounts not present in an IRA.  A $10,000 withdrawal sends $2,000 to IRS and $8,000 to you.  Yet the entire $10,000 is taxable. You get any excess withholding back when you next file taxes though. 

I found that stuff here:  https://www.irs.gov/retirement-plan...-plan-participants-general-distribution-rules

 

[mayble]

yep

 

[mayble]

33
cut out the plywood for the floor over the weekend, with help from my brother-in-law.  this was one project that was on hold for various reasons, and it's so good to have it done!
onward we go

 

[DuneElliot]

I have two weeks left...massive yard/estate/moving sale scheduled for the last weekend of July which gives me a couple of days to run everything that doesn't sell or get given away a new home at the local landfill. This is much earlier than I expected as the house is under contract and they want to be in on August 4th.

 

[Queen]

Just counted, we are down to 7 Mondays, then life changes will be huge! Really looking forward to it.

 

[mayble]

31

 

[DuneElliot]

Just had our massive estate sale this weekend. I slept my first night in the camper on Friday night! I move my camper to a friend's property on Thursday for 6 weeks...this all just got seriously real!

 

[Queen]

^^^ Nice!

 

[bullfrog]

Welcome to the world of full timing!

 

[tx2sturgis]

I found where you can take distributions if you retire at age 55 penalty free under certain circumstances. 

Yep, its called Rule of 55 and it applies when you separate from an employer.

No 10% penalty.

You still gotta give up 20% mandatory tax withholding unless you roll it over to an IRA or the next employers 401k.


=================================
Mayble, I'm very sorry to hear of your loss. RIP Mom.



=================================


Have you got any recent pics of the van conversion?

I JUST retired.. off the payroll about 2 weeks now. But off the job for about 4 weeks.  ..I love your countdown here...I remember watching the calendar.

Actually my 'separation' from my employer was sooner than expected due to some external factors, and it was very 'bittersweet' as mentioned by others.

26 years with the same company....you make lifelong connections. Very painful in some ways. Now most of those connections are gone. But I will make new ones.

So much company 'swag'....reminders everywhere.

Anyway....just sitting on my hands right now waiting on the 401k funds to become available... (30 day mandatory wait).

I have no idea how I will empty this place...but I will try.

Like Debra Dickinson says on her YouTube channel:  KOKO! 

Keep on keeping on...  love it.

 

[Queen]

Seven more Mondays!

 

[DuneElliot]

This is my first Monday in the RV...hopefully many more to go. I am now countin up instead of down

 

[mayble]

29 more mondays
i'm wondering if this site/blog/forum will still be alive then
it's been very helpful, a great resource
too bad the world doesn't have patience for the written word anymore.  i hate trying to get real information from youtube because i have to sift through so much nonsense to find the gold

 

[Queen]

Wow, you're really getting there, mayble!

6 more Mondays here.

 

[Putts]

i'm wondering if this site/blog/forum will still be alive then

Doesn't seem to me like you'll have to worry about that.

Congrats on the big step forward!

Enjoy!

 

[Queen]

i'm wondering if this site/blog/forum will still be alive then

Agree with Putts, it'll be here.  I've been here for about four years and many of the top posters from back then are no longer around.  Forums have an ebb and flow, we seem to be in a small ebb now.