54-Year-Old With $4 Million in 401(k) Can Retire Early Using Rule of 55 Strategy

brusinski from Getty Images Signature and towfiqu barbhuiya Key Points A 54-year-old with $4M in a 401(k) has eight times the average balance for people in their 50s. The rule of 55 allows penalty-free 401(k) withdrawals if you leave your job in the year you turn 55 or later. The rule of 55 only applies to your current employer’s 401(k). Old accounts from previous employers still trigger penalties. If you’re thinking about retiring or know someone who is, there are three quick questions causing ma ...