<prompt> Human: Hi personalfinance,Longtime lurker. But this is the first Im hearing of this. Apparently you can withdraw from a 401k at 55 without the 10 penalty if you meet certain terms? Very simple terms too if I understand it correctly.1. First, this exception applies if you leave your job at any time during the calendar year in which you turn 55, or later, according to IRS Publication 575.2. If you still have money in the plan of a former employer and assuming you werent at least age 55 when you left that employer, youll have to wait until age 5912 to start taking withdrawals without penalty. Better yet, get any old 401ks rolled into your current 401k before you retire from your current job so that you will have access to these funds penalty free.3. This exception only applies to funds withdrawn from a 401k. IRAs operate until different rules, so if you retire and roll money into an IRA from your 401k before age 5912, you will lose this exception on those dollars.If Im reading it correctly, it sounds like this: I rollover every 401k Ive had as I continually move jobs. So I just have one 401k. Then at 55, I quit that job...and thats all it takes? I can now withdraw at 55 penalty free?Please correct me if Im wrong. Ive heard 59 12 all my life, even from people here on personal finance, so Im suspicious. But if this is true, I feel like it needs to be shared! More awareness about something like this would be greatThanks!Sources:  <response>: Yep. 55 if you leave your job where your 401k is. You can also take it prior to 55 by doing a 72tsepp. 