[widgeon13]

Some exceptions that do not require penalty:

401k Withdrawal Exceptions

The following three exceptions also apply to 401k plans:

* Distributions or withdrawals made to you after termination of employment, if the separation from your employer occurred in or after the calendar year you reached age 55.
* Distributions of dividends from employee stock ownership plans.
* Distributions or withdrawals made to an alternate payee under a qualified domestic relations order. (This often happens as part of a divorce settlement.)

I know option (1) is available w/o penalty as I have discussed w/ a financial planner although have not taken from my own 401K.

Check w/ a financial planner or tax advisor you have confidence in!!