Pockets

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re: Rule of 55

Posted by Pockets on 2/26/26 at 10:47 am to Twenty 49

"Yes, the Rule of 55 provision, which allows penalty-free 401(k) or 403(b) withdrawals if leaving a job at age 55 or older, must be included in the documents ERISA plans provide to beneficiaries. This information is typically detailed in the Summary Plan Description (SPD), covering plan features, eligibility, and withdrawal rules."

My plan is governed by ERISA and that the "Board of Trustees intend that the plan will comply with all requirements for a qualified 401k savings plan based on all applicable sections of the IRS Code." I have called and talked to multiple people today about partial distributions. Finally one of them said yes I can withdraw different amounts each month. It was like pulling hens teeth, as none of them wanted to give "financial advice "

re: Rule of 55

Posted by Pockets on 2/24/26 at 2:59 pm to CharlesUFarley

I do understand that using the RO55 I will have a 20% tax withholding on my checks. The reason I do not want to use the 72t in my situation is I don't want to be subjected to SEPP's(substantially equal periodic payments). I would like to customize the amounts I withdraw. I also don't think ill ever be in the 12% tax bracket. For 2026 its going to be the 24% , then should be able to stay in the 22% tax bracket.

re: Rule of 55

Posted by Pockets on 2/24/26 at 1:01 pm to TorchtheFlyingTiger

"Did OP say it was all Roth?
I think that was to @oneg8rh8r who went on to contradict himself saying company match and associated growth were traditional."

I only have one traditional 401k. None of my investments are in a Roth.

re: Rule of 55

Posted by Pockets on 2/24/26 at 7:18 am to TorchtheFlyingTiger

"$150k Buy out is most advantageous if invested and/or used for necessary expenses so you can delay 401(k) withdrawals. Unless the things you plan to payoff are high interest"

I am not delaying withdrawals from my 401k. I am using the Rule of 55. Yes paying off some high interest loans.

re: Rule of 55

Posted by Pockets on 2/23/26 at 10:05 pm to GeauxTigers777

"I think the buyout makes sense if your numbers only drop $350 per month. That’s 35 years of pension (until you are 90) in lump sum without considering future gains (highly recommend investing it), but also have to include tax implications for this year. Also, does your pension have a cost of living adjustment? I would imagine it does, or these numbers don’t make much sense from the employee side."

Fairly certain I do not have a COLA. Will call tomorrow to find out. My plan for the $150k is to use 50k to payoff some things and 50k as a down payment for land.

re: Rule of 55

Posted by Pockets on 2/23/26 at 9:59 pm to SmackoverHawg

"Can you continue to work their and draw without the penalty? Mine has done better than hoped. I'd like to be able to enjoy some of it before the age of 59.5"

No, and if I stay , I do not pass go and do not collect the $150,000.

re: I Just Realized That AlterEd Is BoarEd

Posted by Pockets on 2/23/26 at 7:11 pm to LuckyTiger

Definitely not as angry.

I think he may still be just as insane.

BoarEd was a bot!

Political Talk

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re: Rule of 55

Posted by Pockets on 2/23/26 at 6:59 pm to gpburdell

Ok, we now have a plot twist for my retirement scenario. My company has offered a buy out of $150,000. I have until March 12th at midnight to make a decision. If yes, last day would be no later than April 26th. Instead of finishing out till October and receiving $4800 a month I'll be getting around $4450. If anyone has some suggestions/ideas/thoughts I'd like to hear them. TIA.

re: I Just Realized That AlterEd Is BoarEd

Posted by Pockets on 2/23/26 at 1:43 pm to LuckyTiger

First upvote.

Political Talk

re: Rule of 55

Posted by Pockets on 1/15/26 at 1:14 am to slackster

My company has a pension. I will earn my 30 year credit somewhere around Oct. 4th. give or take a few days. I have to have worked 1801 hrs. to get it. 30 years full time = $4,800 a month. I also have $158.00 a month pension from working 5yrs 9 months part time. So if everything goes rt I'll get $4,958 a month starting 11/1/26. Insurance will cost me $200 a month and tax. So maybe $4,400? a month if I choose not to take a 75% or 50% survivor benefit. Those might bring it down to around $4,100/$4,200ish.
My 401k is sitting rt about $1,063,000.00 today. My wife works and probably will work till she is 62 (7 more years, I'll take my SS at 62 also). My plan is to only draw $3,000ish a month from my 401k. I net between $5,000 and $5,500 a month rt now. So just trying to keep it close in retirement.
My 401k plan says it participates in RO55, but the refuse to give me any written details.
Yeah, once I reach 30yrs pension credit, I'm done. Bossman is getting the double rods as I'm walking out the door.

Rule of 55

Posted by Pockets on 1/14/26 at 11:51 am

Rule of 55 for 401(k)

I am 55 , I will retire in October (56 then). My 401(k) plan administrator (Empower RET) says they participate in the RO55. When I ask them questions about it, they don't seem to want to give any info other than, yes we have it.

Questions
1. Does every 401k have to participate ?
2. Do you have to take a 1 time lump sum?
3. Do you have to take a specified dollar amount each month and that amount doesn't change?
4. Can you take different amounts each month based on your financial needs. Say $1,000 in January then $3,000 in February then $2,500 in March?

After talking with multiple people it might appear that all you do is at the end of the year, your plan administrator will send you a 1099-R and in box 7 it will have code 2 marked. Then you send your 1099-R with your other tax forms off to the IRS . And that code 2 in box 7 basically tells the IRS that your 59 1/2 years old and not to access the 10% early withdrawal penalty fee?

Is that's it ?
Am I missing anything else?
Thanks in advance!

re: Merry Christmas Everyone

Posted by Pockets on 12/25/25 at 12:44 am to bayou2

Merry Christmas!

Political Talk

re: advice needed on rifle

Posted by Pockets on 8/3/25 at 11:42 pm to tigertrueAU

Another vote for a 270.
You should also look at a Mossberg Patriot for about the same price, you can find them with a Vortex Crossfire ll 3x9 40mm. Go to a gun store and shoulder all 3, find the one that fits you the best.

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re: Best places to eat in Bar Harbor, Maine

Posted by Pockets on 8/3/25 at 11:10 pm to kjntgr

West Street Cafe

Start with the New England Clam Chowder and Lobster Bisque then for your main dish order the Haddock Au Gratin. I could eat this everyday. Enjoy!

Travel Board

re: What is the furthest West and furthest North you have seen spanish moss?

Posted by Pockets on 6/7/25 at 10:31 am to Saunson69

Fun fact. If you drive east on I-10 to Mout Belvieu and go north on SH 146 in-between Moss Hill and Rye TX there is a historical market on the east side of the highway. It says this area along the Trinity river was one of the proposed sites for the Capital of the State of Texas. The planners decided against this area because there was too much Spanish moss hanging in the trees. To them it ment to many flying and biting bugs and insects. Just a little bit too swampy. I think Spanish moss has more to do with the ecological region (there are 10 in Texas) of the Piney Woods than just going north.

re: Best UTV these days given my needs

Posted by Pockets on 5/18/25 at 5:32 pm to Royalfishing

I have a 2015 Honda Pioneer 500. I have installed power steering and Walker Evans shocks. It rides like a Cadillac now. It does fit in the back of a pickup. I'd look at the 520 as it comes with a truck bed. For two people riding, you can't beat it. If you want a 4 person ride get the 700-4 or 1000. But you'll need a trailer. Pretty sure they sell Walker Evans shocks for them also.