Turning 55 and leaving your job? What to know about the IRS rule of 55

The Retirement Group reports on the IRS Rule of 55, which provides a specific financial advantage for employees. This regulation allows individuals who leave their job after turning 55 to make penalty-free withdrawals from their 401(k) accounts. While this rule offers flexibility for those transitioning into retirement early, it is subject to key conditions that must be met to avoid taxes. Understanding these requirements is essential for those planning their departure from the workforce.