Investing for a 59-Year-Old
The age 59.5 milestone is approaching. At 59.5, penalty-free withdrawals from IRA and 401(k) accounts become available under the normal distribution rules, regardless of employment status. If early retirement is in view, plan around this date carefully. Distributions before 59.5 from an IRA or former employer plan (without a qualifying exception) incur a 10% early withdrawal penalty in addition to ordinary income tax.