Author Topic: 401k withdrawal when retiring at 50: Qualified Public Safety Employees - anyone?  (Read 403 times)

TomTX

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So, Qualified Public Safety Employees are allowed to draw from their 401k if they retire in the year they turn 50

https://www.irs.gov/publications/p575#en_US_2015_publink1000226714

Has anyone here actually done this? If so, what's the process? Is it just something you declare on your income tax form?

secondcor521

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Note that the publication you linked to included "distributions made from a governmental retirement plan".  I think that will typically exclude 401(k) plans.

As far as I know, the individual just knows and declares that they're a PSO and takes advantage of the tax benefits (there's the ability to do the "Rule of 50" and there is the ability to exclude some health insurance costs from income.  I think there is no special reporting or codes on the 1099-R or other retirement income form.

DaTrill

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Call the provider.  All plans are unique and although the IRS may allow this, your employer or plan may not support this.  If allowed, you normally will have to separate from the employer to withdraw early.