I am curious if there are any early retirees who can comment on how they invested and later withdrew from their 401k/403b. There is a early withdraw penalty of 10% for those who withdraw earlier than age 59.5. I have read there is something in the rules that lets go of the 10% penalty for those age 55 or older who retire or are fired. My thinking is I may not be able to tap my 401k if I retire before 55 and if this is the case should I forego some contributions for taxable accounts.
Thoughts?