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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).

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โˆ™ 2016-09-01 16:31:26
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Q: How do you withdraw from your 401k after age 59?
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Related questions

At what age can you withdraw from 401k without penalty?

You can withdraw beginning at age 59 1/2.


Can you withdraw funds from a 401k before age 59 12?

You can, but you will be fined.


Do you have to pay taxes on a 401K at age 59 12?

when you withdraw the money, yes.


What happens to your dads 401k if he dies?

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.


Can you withdraw my total amount of 401K after age 68?

yes


Are you penalized if you withdraw your 401K after age 64?

Ask your 401k provider. I go thru John Hancock and they do not penalize


I have a 401k account from a previous employer can I roll my funds over to a money market account without penalties and withdrawl from it months down the road ?

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.


What age can a person withdraw funds from their traditional IRA without a penalty?

You can withdraw without penalty at age 59 and a half.


Is it possible to withdraw funds from a tax deferred 401k to pay off a second mortgage?

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.


What are the rules of a 401k withdrawal?

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.


I worked for Heartland Express. when I quit they say I can't draw the balance of my 401k until the 4th anniv. of my leaving. I am 59 1 2. Is this legal?

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.


When can you get your 401k?

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.

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