Anyone here use it?

Are you talking 4% rule? If so that’s what I’m aiming for, got 25 years to go though…

The IRS Rule of 55 allows individuals who leave their employer (due to quitting, layoff, or firing) during or after the calendar year they turn 55 to take penalty-free withdrawals from that specific employer's 401(k) or 403(b) plan. While the 10% early withdrawal penalty is waived, regular income tax still applies.

Key Aspects of the Rule of 55:
Age Requirement: You must leave your job in the calendar year you turn 55 or older.
Specific Plan Only: The rule only applies to the 401(k) or 403(b) of the employer you just left, not old 401(k)s or IRAs.
No Penalty: Withdrawals are exempt from the 10% penalty typically applied to distributions before age
.
Income Tax Applies: You must still pay income taxes on the withdrawals.
Public Safety Exception: Qualified public safety employees can use this rule at age 50.

Important Considerations:
Funds in IRA: If you move your 401(k) funds to an IRA, you cannot use the Rule of 55; you must wait until
.
Keep Funds Put: To utilize this, you must keep the money in your current/former employer's plan, not transfer it to a new employer's plan or an IRA.
Voluntary Control: You can continue making these penalty-free withdrawals even if you start a new job elsewhere.

Looked into that years back, and decided against it since at the time you were locked into 5 yrs of whatever amount of withdrawals you selected....Just rode it out on savings to 59.5 when there were better options.

I will be taking advantage of the rule of 55 when I retire in June at 55.5. I have pension but with the amount I have accumulated in my 401k I will use a small amount to supplement my income and really not hurt my over all retirement savings in the future.
Through my employer plan and Fidelity I can withdraw daily as long as I leave a portion of my money in my present employers 401k (I plan to roll some of it into an annuity to lay the foundation for some guaranteed income later)

The rule of 55 should also not be confused with a SEPP (substantially equal payments) which also allows withdrawal penalty free before 59-1/2 but you have to commit to the equal payment schedule.

Rule of 55 key is it has to be drawn from the 401K of you employer that you separated from at age 55 or older.

Your right garymc...I confused the rule of 55 with SEPP....It's been awhile.

I retired at 58 1/4. Figured out what I needed per month until 59 1/2. Left that amount in the company 401k and rolled everything else into a single retirement account. Rule 55 worked out well for me.

Yes, I used it as well as the 72T rule. I am locked in to take the same amount for 5 years or 59-1/2, whichever is longer from the time you started removing money. But if you have a good financial advisor, your money is in more than 1 bucket and you can still pull from those at 59-1/2 if needed.

I retired a few days after turning 56 but chose not to take advantage of the 55 1/2 rule for 2 reasons. One reason was that my employers' 401K plan did not have the type of investment options I wanted post retirement, and the other was that I did not need the income for at least 4 more years and could roll it to an IRA where I would have the investment options I wanted.

I used it, I retired at 55. No regrets. I took a lump sum so I get no money from the company---it's all in the stock market--since 03!!