The 10 percent penalty on withdrawals before 59 and a half has a shorter exception list than most people assume

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The rule of 55 allows penalty-free 401(k) withdrawals if you leave the job in or after the year you turn 55 The annual additions limit counts employer match and after-tax money so the headline deferral cap is not the real ceiling The IRA limit is per person so a spouse with no earned income needs a spousal IRA to contribute at all Changing jobs mid-year can leave you running two 401(k) accounts and paying two sets of recordkeeping fees Plan fees are two separate numbers: recordkeeping charges taken from the account and the expense ratios inside each fund Required minimum distributions now begin at 73 and a Roth 401(k) no longer forces them at all Substantially equal periodic payments must run five years or until 59 and a half whichever is longer A solo 401(k) stacks employee deferrals and employer profit sharing on the same self-employment income A hardship withdrawal still owes income tax and usually the penalty unless the reason sits on the short IRS list A 401(k) loan is repaid with after-tax dollars into an account that will be taxed again on withdrawal