Tag: he could withdraw from his 401(k) without penalty under the IRS “Rule of 55” (also called the “separation from employment” exception). This only applies to 401(k)s and similar qualified plans

Picture this: James is 58 years old. He has built up about $1.5 million in retirement accounts and still has a modest mortgage on his house. He doesn’t like the idea of ​​carrying debt into retirement, and the thought keeps coming back: Should he just take a big withdrawal from his IRA or 401(k), pay […]

By Tomasa Rizzotti

January 4, 2026January 4, 2026

Picture this: James is 58 years old. He has built up about $1.5 million in retirement accounts and still has a modest mortgage on his house. He doesn’t like the idea of ​​carrying debt into retirement, and the thought keeps coming back: Should he just take a big withdrawal from his IRA or 401(k), pay […]

By Tomasa Rizzotti

January 4, 2026January 4, 2026