Carl Meyer, age 56, terminated his employment with his corporate employer because he wanted to begin a second career as a freelance photographer. If Carl withdraws funds from his employer-sponsored qualified plan, he will pay the 10% premature withdrawal penalty.

Question

Quizplus · Accepted Answer

Since Carl Meyer is 55 or older and has terminated his employment, he can withdraw funds from his employer-sponsored qualified plan without incurring the 10% premature withdrawal penalty, according to IRS rules regarding distributions after separation from service in or after the year the employee reaches age 55.

Carl Meyer, Age 56, Terminated His Employment with His Corporate