Editor’s note: "The Rule of 55" is part eight of an ongoing series focused on how to retire early and the FIRE (Financial Independence, Retire Early) movement. Part One is How to Retire Early in Six ...

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 ...

A 401 (k) is designed for retirement, not short-term emergencies. The baseline rule is this: withdraw money before age 59½, ...

For many Americans, the dream of retiring early is often hindered by the IRS’s 10% early withdrawal penalty on distributions from retirement accounts like IRAs or 401(k)s before age 59.5. However, the ...

Key Points The rule of 55 allows penalty-free 401(k) withdrawals only from your current employer’s plan after separation.

Editor’s note: This article is part 10 of a series on how to retire early and the FIRE (Financial Independence, Retire Early) movement. Part one is How to Retire Early in Six Steps. To see all early ...

If you try to withdraw early from just about any retirement plan, you'll be slapped with a penalty—an incentive to leave your money alone and let it build toward retirement like you always intended.

Forbes contributors publish independent expert analyses and insights. Cicely Jones simplifies financial concepts for young professionals. This month, I spoke with a 52-year-old who was fed up with ...