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Asked 6/4/2008

I am currently 56 years old & was just laid-off - can I take $ from 401k w/o 10% penalty?

I was just laid-off from a company I have been with for 28 years (they filed for bankruptcy). I am 56 years old and believe that I can take money from my 401k without the 10% penalty because I'm leaving the company and are older than 55. If this is true - can I take a lump sum or do I have to take distributions each year?

 
 
 
 
 
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