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).
You can withdraw beginning at age 59 1/2.
You can, but you will be fined.
when you withdraw the money, yes.
The 401k passes intact to his heirs, with the same penalties if they are not of age (59 1.2) to withdraw it as cash. He can allocate it to specific beneficiaries or describe the distribution in his will.
A lot of the answer depends on your age. If you are younger than 59 1/2 you will have a 10 % penalty on the amount you withdraw from your 401K and the amount will be regarded as income in your income tax return. If you are older than 59 1/2 you can start to make withdrawals from your 401K but there are regulations the IRS has on how much you can withdraw each year depending on your age.
Ask your 401k provider. I go thru John Hancock and they do not penalize
If you are over 59 1/2 you can withdraw money from your 401k for any reason. If you are under 59 1/2 you can take a loan on the 401k in most cases. Ask your 401k administrator about this. Also, if you were thinking about taking a hardship withdraw to pay off your second mortgage, that isn't allowed. In terms of your house, hardship withdraws are only available to purchase a primary residence or to prevent eviction or foreclosure on your primary residence.
You can withdraw without penalty at age 59 and a half.
Early withdrawal of retirement money from a 401k can result in penalty fees and the funds are taxable, at the time of withdrawal, as ordinary income. If you have not reached the age of 59 1/2 when you decide to withdraw your money your penalty payment will be 10% of the amount withdrawn.
Dear sir/madam, This is legal as you are under the age of retirement and for some companies not even able to withdraw a 401K until 67.
The standard age for taking cash out of your 401k plan is 59 ½. So, if you are over that age then you can take your money out as dispersals and you'll just pay standard income tax.
A 401K plan is yours. You can withdraw the funds without penalty if you're 59 1/2 yrs old or older. If you withdraw the funds at an earlier age than that, you will incur penalties and taxes because the funds were deposited before being taxed.
Typically, if you withdraw money against your 401k retirement plan before the age of 59 1/2, you have to pay both income tax on the withdrawal and a 10% penalty. Of course there is ways to avoid those penalties. Go ahead and visit your bank or financial advisor to discuss setting up an annuity plan. Ask them how much you can withdraw each year.
Yes you can. Please refer to fidelity's website on how to proceed.
The IRS do not specify an actual age that the 401K mist be withdrawn. The longer it is left then the more money it will accrue. Therefore it is a good idea to keep it as long as possible.
From an IRA 59 1/2
No. They can tax it if you withdraw from it, but borrow no.
59 1/2 (age that distribution became "normal" distributions.
A 401k plan is a retirement plan. Unlike a savings account you can withdraw money instantly but for a retirement plan you cannot touch that money till you reach the recommended retirement age.
The amount does not matter, you will owe all income taxes due plus a 10% penalty if you are not 59 1/2 years old.
591/2, I recently read you can take distributions without penalty at 55. articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/jobless-what-to-do-with-your-401k.aspx
59 1/2 years of age normally, but I think there is a hardship clause that will allow distributions at 55.