Ask Experts Questions for FREE Help !
Ask
    Beebosmommie's Avatar
    Beebosmommie Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Jan 11, 2008, 05:10 PM
    What age can I take out my 401k?
    What age can I take out my 401k and how will it be taxed?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Jan 15, 2008, 04:33 PM
    In general you must be 59-1/2 years of age to make a withdrawal without incurring penalties. Withdrawals from your 401(k) are almost always taxed as ordinary income for both state and federal taxes - the exception is if you have any "after-tax" contributions to the plan those are withdrawn tax-free, but any earnings or gains associated with these contributions are taxed as ordinary income. Also, if you are under 59-1/2 years of age you most likely will have to pay a 10% penalty in addition to the ordinary income taxes (assuming you don't start a regular withdrawal plan using "substantially equal" withdrawals). If you are under 59-1/2 and need some of the money from your 401(k), you are better off taking a loan from your plan rather than a withdrawal, if your plan allows.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k loan and pulling momey out of a 401k to pay the loan off [ 2 Answers ]

I have just turned 591/2 and have a 5,000 dollar loan from my 401k... can I withdraw monies to pay this loan off... and how much will I be taxed if I do? Mickey Huddleston

Should I go for 401k? [ 3 Answers ]

Hi I am an Indian national who got 2 yr visa for Studies in US(f1). After completing my degree, I am employed by a wall street bank as an associate. They have a 401k program in which they will not match my contribution for the first year but after that to an extent(5% of income). I have no...

401k [ 8 Answers ]

I am inquiring as to whether a 401K account is still active after 6 years, even though I haven't put anything into it. If so, how do I go about inquiring how to get that money out of that account. The company I worked for has been sold to UPS and now I don't know how to get information on my old...

What to do with 401K [ 1 Answers ]

I am being let go from my job after 20 yrs. I may retire in less than a year. I will need to supplement my pension and Social Security. What is best route to reinvest my 401K, in order to collect a monthly amount?

401k [ 3 Answers ]

I was listening to a Suzi Orman program where she is now saying, unless the employer offers a 40lK company match, do not contribute to a 40lK. The reason? The tax rates today are much less then they were 10,15,20 years ago. My company does not match, however I contribute 15% of my salary. I...

View more questions Search