I am 59 1/2 years old. I want to withdraw all of my 401K - my company says I cannot, I can only withdraw the amount I have put in, but I am fully vested. I thought 59 1/2 was the magic number to withdraw. They said I would have to quit my job to get all of it. Is that right?

Your company is correct. I have been in benefits administration for over 13 yrs now. Unfortunately if you are still actively employeed with your employer, the plan will not allow you to pull out any 401k dollars unless it is for safe harbor reasons(like purchase of new home or eduction) or loans. To be eligible to pull funds out at 59 1/2 you would need to be terminated/retired from employer.