Can You Rollover or Withdraw a Wal-Mart 401(k) Over the Age of 59 and 1/2?


Quick Answer

There are restrictions placed on 401(k) plans regarding access to funds at 59 1/2 years of age if the person is not yet retired from the company that offers the plan, reports About.com. Therefore, Wal-Mart employees should consult with the company benefits administrator concerning 401(k) rollovers or cashing out.

Continue Reading
Related Videos

Full Answer

Most 401(k) plans allow people who are retired at 59 1/2 years of age to withdraw money from the plan without having to pay a tax penalty, according to About.com. It is also possible to rollover a 401(k) to another plan at this age, if the plan provides that option, notes CBS News. Although rolling over a plan is possible, this may not be the best option for the long-term. If the 401(k) plan is administered by a large employer, the employer is often able to negotiate reduced fund management fees, which allows investors to keep more money. Rolling a 401(k) into an individual retirement account may require investors to withdraw a minimum amount of money from the account on a regular basis, which is taxable.

Cashing out a 401(k) plan entails filling out paperwork from the investment company administering the plan, and it may also require a signature from the employer's benefits manager, notes About.com. Individuals over 59 1/2 must pay income taxes on amounts withdrawn.

Learn more about Financial Planning

Related Questions