Age 55

If you’re thinking of leaving the work field when you turn age 55 or older, you should know that you are allowed to tap into your 401(k) account and make penalty-free withdrawals from the account associated with the job you most recently left. This is called the rule of 55.

This IRS provision helps you sidestep the 10 percent penalty for early withdrawals but does not exempt your traditional 401(k) distributions from income tax. Also, the rule does not apply to IRAs, so if you’re thinking of rolling over your 401(k) account balance to an IRA, you won’t be able to make penalty-free withdrawals until you’re 59 1/2 or older. This brings us to the next age.