Thread: Expect 50% pay cuts next week

  #36  
BMEP100 , 03-16-2020 08:09 PM
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Quote: Since this thread has touched on monetary issues, I have a questions about our PRAP. This is a hypothetical, worst-case scenario, so please understand I'm not running to the bank as I type this. Just wondering if it's even possible to tap into PRAP retirement savings? I understand all the penalties and implications of early withdrawal. I just don't know if the PRAP is different than a standard 401K, and if we do, or do not, have the ability to make early withdrawals. Thanks to anyone who responds.

Yermom
If you are over 55, you can roll your PRAP (401k), into an IRA or some other qualified investment account. Once there, I believe the IRS has exemptions for pre-retirement disbursements without penalty. Also, as much as I dislike annuities, you could also roll the 401(k) into a variable annuity which could begin to pay out monthly.
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