10% penalty

[Felicia]

To avoid the 10% penalty, an employee must separate from service after 55.

Do this mean that, in order to aviod the 10% penalty, he must wait until he is 55 to leave employment ? That is, if he leaves employment at age 52 but waits until he is 55 to start taking distributions, can he avoid the 10% penalty?

[MGB]

If you terminate prior to 55, you must wait until 59-1/2. In order to make use of the 55 exemption, you must terminate after 55. See Code Section 72(t)(2)(a)(v).

[Belgarath]

The separation from service must occur after age 55. Actually, the IRS has said that as long as the separation from service occurs during the calendar year in which you attain age 55, that this would qualify.