Can I withdraw 401K money by 1/3 each a year?

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Originally Posted by cptyom

Can I withdraw 401K money by 1/3 each a year?

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Withdrawal rules vary by plan, but typically you can take a withdrawal if you are either (a) no longer an active employee of the company where the plan was established, or (b) at least 59-1/2 years old. If you are eligible to make a withdrawal you may make as many or as few as you wish, and of whatever size you wish, though there may be exceptions - for example if your account is small, say under $5K, they may require that you withdraw the entire amount all at once. So check with the plan administrator to see what the precise rules are for your plan. And remember that they will automatically withhold 20% for income tax, you may owe state/local income tax as well as federal (depending on where you live), and you will likely owe a 10% penalty if you are under age 59-1/2.

Yes, you can withdraw the money in any portion you desire.

How you will be taxed on those withdrawals depends on your age when you make the withdrawals.