I’m 55 and Ready to Retire: What Happens to My 401(k)?
This Yahoo Finance article, published July 21, 2026, addresses a Reddit user's question about managing a 401(k) upon retiring at age 55. It explains the IRS Rule of 55, which allows penalty-free withdrawals from an employer's 401(k) if separation occurs in the year the account holder turns 55, but warns that rolling funds into an IRA forfeits this protection. The article advises retirees to assess their risk tolerance, considering how long they can wait for portfolio recovery after a market downturn. It recommends gradually shifting to a more conservative allocation, such as a 45% stocks and 55% bonds split based on the 'age minus 100' formula, rather than exiting equities abruptly. The piece emphasizes consulting a financial advisor for personalized planning.
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