Ask Experts Questions for FREE Help !
Ask

What age can I take out my 401k?

Asked Jan 11, 2008, 04:10 PM — 1 Answer
What age can I take out my 401k and how will it be taxed?

Search this Thread
Share |
1 Answer
ebaines's Avatar
ebaines Posts: 10,056, Reputation: 5539
Expert
  
#2

Jan 15, 2008, 03:33 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for both state and federal taxes - the exception is if you have any "after-tax" contributions to the plan those are withdrawn tax-free, but any earnings or gains associated with these contributions are taxed as ordinary income.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.
Helpful
Not your question? Ask your question View similar questions
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Add your answer here.

Remove Text Formatting
 

Undo
Redo
  
Decrease Size
Increase Size
Bold
Italic
Underline
Align Left
Align Center
Align Right
Ordered List
Unordered List
Decrease Indent
Increase Indent
Insert Email Link
Wrap [QUOTE] tags around selected text
Wrap [CODE] tags around selected text
Wrap [HTML] tags around selected text
Wrap [PHP] tags around selected text
Wrap [YOUTUBE] tags around selected text
Notification Type:



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 Investing questions Search