Rule of 55 calculator

Year you were born

Year you leave your job

Type of job

401(k) balance at that employer ($)

Withdrawal a year ($)

Return on the balance (%)

Rule of 55 appliesYesYou leave in the year you turn 56; the rule starts at 55

10% penalty avoided$16,000On $160,000 taken through 2029

Years before 59½4Through the year you turn 59

Left at the end of that time$426,728After withdrawals and growth

Leaving in the year you turn 56, you can take $40,000 a year from this employer’s plan without the 10% penalty, saving $16,000 before 59½. Income tax still applies, and the plan withholds 20% from each cash withdrawal.

Free Rule of 55 calculator by Killion Labs. Tables, worked examples and assumptions are on the full page.