Intelligence

Leveraging the Rule of 55 for retiring clients

Reporter: David LaMartina

Publication: ThinkAdvisor

Contact: iq@fullyvested.com

Deadline: Apr 11, 2017 7:00 pm

This story will be featured in a new, retirement-focused section of Nationwide’s ThinkAdvisor website. The new section will be similar in content to the previously featured Retirement Wire:
http://www.thinkadvisor.com/sponsored/retirement-wire/. The usual age for tax-sheltered 401(k) withdrawals is 59 ½, but the little-known Rule 55 allows employees who leave their jobs at 55 to withdraw without penalty. This seems to be a good option in some clients’ cases – company buyouts, downsizing, self-employment opportunities, etc. But is it really? For whom (and when) is it a good idea to leverage Rule 55? Should advisors tell more of their retiring and soon-to-be retiring clients about this option? What do advisors and their clients need to know about Rule 55 – pros, cons, potential penalties, tax implications, etc.? Finally, why isn’t the rule more well-known? Are there better early 401(k) distribution options? How can advisors better help clients who have the need or opportunity to retire early? Requirements: I would like to interview one or two financial advisors who have specifically dealt with Rule 55 as they’ve advised retiring clients. Which strategies did your clients ultimately use, and why?

Read Article: http://www.thinkadvisor.com/
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