When I begin withdrawing from 401K or IRA accounts at age 70 1/2, does the interest on those accounts keep accruing year after year even as I am withdrawing the amount required?

Yes.

The money in an IRA oar 401k has never been taxed by the IRS. The IRA or 401k withdrawals are pre tax-money. The year you withdraw your minimum required by law or more, that money is fully taxable on your 1040. What remains in your account continues to earn interest, dividends depending on your investments.

When I turn 59 1/2, Do I need withdraw all the money from my 401k account or I can withdraw as much as I need and leave the rest in the account?
P

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Originally Posted by pkitti

when I turn 59 1/2, Do I need withdraw all the money from my 401k account or I can withdraw as much as I need and leave the rest in the account?
p

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You can take out as much - or as little -as you want. There is no minimum distribution required at age 59-1/2. However, once you reach age 70-1/2, you must start to withdraw a minimum amount from your IRA (unless it's a Roth IRA).

I was 59,on Oct. 1,2007. When can I withdraw my 401k? I don't know if it will be March or April and how long does it take to get the money?

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Originally Posted by wasilb

I was 59,on Oct. 1,2007. When can I withdraw my 401k? I don't know if it will be March or April and how long does it take to get the money?

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Assuming that you are no longer an employee of the company where your 401(k) is located, you can start withdrawing without penalty as of April 1, 2008 - that's when you turn 59-1/2. Prior to that you may be able to take withdrawals without penalty if:

1. You separated from service in or after the year you turned 55, or
2. If you initiate a series of "72t" withdrawals (if your plan allows), which require substantially equal payments over your life expectancy.

If you are still an employee, the rules of your plan may allow some in-service withdrawals to commence in April, but that depends on the rules of your specific plan.