Rule of 55 Early Retirement Calculator

See if you qualify to tap your 401(k) penalty-free before age 59½ — and how much monthly income it could provide.

Your current ageHow old you are right now

Age you plan to retireMust be 55 or older to qualify

Current 401(k) / 403(b) balance ($)Balance in the plan from your most recent employer

Expected annual return (%)What you expect the balance to earn until you retire

Years you plan to draw from itHow long until you switch to other income

Do you qualify?
Projected balance at retirement
Estimated monthly income during draw period
Penalty avoided

The Rule of 55 has specific IRS requirements around plan type, separation date, and account source. This is an estimate only. Consult a tax advisor before making withdrawals.

What is the Rule of 55?

The Rule of 55 is an IRS provision that lets you withdraw from your 401(k) or 403(b) penalty-free if you leave your job in or after the year you turn 55. You still owe income tax — but the 10% early withdrawal penalty is waived.

Key rules to know

You must leave your employer in the calendar year you turn 55 or later. The rule only applies to the plan at that specific employer — not old 401(k)s from previous jobs. IRAs do not qualify for the Rule of 55.

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