What is the age I can withdraw from my 401K without penalty. ?
Some people say the age is now 55 to withdraw without penalty some say it is still 59 1/2. I googled it and I get conflicting answers . Please help!!!! Thanks
- Elaine MLv 71 month ago
Talk to your employer, it depends on how it was set up. Do you have your original paperwork?
- A HunchLv 71 month ago
Wayne is partially correct.
At age 55, you can withdraw from your 401K without penalty if you leave employment (for any reason = laidoff, fired, quit, retired etc), from only "that" employer's 401K plan.
If you have other 401K plans with previous employers, those you can't access without penalty until age 59.5.
In 2020 there was other special rules, but I won't get into it.
- Wayne ZLv 71 month ago
If you have separated from employment (quit or been fired), you can withdraw the money after age 55 without penalty. Otherwise, it is 59.5.
Note: It is rarely a good idea to cash it all out at once due to taxes.