What would you like to do?

How do you withdraw from your 401k after age 59?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

The question should say "age 59 and 1/2 years." For whatever reason, 59.5 years is the age at which you can start withdrawing funds from your 401K without penalty. Before 59 and 1/2, the penalty for early withdrawal is 10% of the taxable amount of your withdrawal.

You can also withdraw money from your fund without the 10% penalty if you are leaving your employer when you are at least 55 or you become disabled.

If you are eligible to withdraw money from your fund then you have to pay income taxes on the withdrawal. However, you do not have to pay income taxes if the money you withdraw go into a different employer sponsored plan or an Individual Retirement Account (IRA).
+ 168 others found this useful
Thanks for the feedback!

Can you withdrawal funds from a 401k beginning at age 55 if you are retired at 55 without incurring penalties?

  First, the general advice is do not do this. Unless you have a detailed plan which enables you to have enough funds in retirement even after tapping your 401k early, do

Can you withdraw money from an 401k before retirement age?

Yes but not without paying the 10% early withdrawal penalty on the taxable amount of the distributions unless you meet one of the exception to the early withdrawal penalty. Th

What age can you collect from your 401k plan?

You can collect from a 401K at any age; however, there are withdrawal penalties as well as tax penalties until age 59-1/2. After 59-1/2 you will still have the penalty of it b

What is penalty for 401K withdrawal before retirement age?

10% early withdrawal penalty on the taxable amount of the distribution plus income tax at your marginal tax rate. If you are separated from the company that has the 401K plan

When can you withdrawal from 401k?

Typically, you're able to withdrawal from a 401k if you're atleast Age 59 1/2 and older or if you're no longer employed with the Company that the 401k you were contributing to

What is the penalty for early withdrawal of 401K loan?

The penalty is 10%. All in all you will pay your tax bracket + 10%. Actually that is incorrect. The question was about a 401k loan. There are no taxes on 401k loans unless yo

How can you qualify for tax free 401k withdrawal?

You will never be able to withdraw the deferred compensation amounts from the 401K with out having to pay the federal and state income taxes that will be due when you take any