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If a 55 year old employee is laid off work due to downsizing, is there a way to take distributions from the employers plan without incurring a penalty?

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If a 55 year old employee is laid off work due to downsizing, is there a way to take distributions from the employers plan without incurring a penalty?

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Yes, as long as the plan assets remain with the employer and the plan documents allow it. The employee may request distributions directly from the employers plan. These distributions are not subject to penalties for employees who are 55 or greater and separate from service.

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