Q:
Can You Withdraw From Your 401(k) at Age 62?
A:
Quick Answer
Although plan holders can make withdrawals from a 401(k) any time, a tax tip from the Internal Revenue Service warns that disbursements from a 401(k) before the age of 59 1/2 are subject to a 10-percent penalty. Nolo advises plan terms that require waiting until age 62 or 65.
Continue ReadingFull Answer
U.S. News & World Report lists important ages for retirees, noting that those who leave their job during the calendar year they turn 55 or later can withdraw money from their 401(k) without a 10-percent early withdrawal penalty. At age 62, only the terms of an employer's specific 401(k) plan can preempt federal rules on disbursements. Some plans might require waiting until age 62 or 65, while others may have an option to take a once-yearly distribution.
Learn more about Financial PlanningRelated Questions
-
Q:
How Can You Withdraw Money From a Roth IRA Before Age 59 1/2?
A: Account holders can withdraw contributions to Roth IRAs whenever they want without penalties, but withdrawals of investment earnings before age 59 1/2 are ... Full Answer >Filed Under: -
Q:
When Can You Start Withdrawing From Your 401(k)?
A: Most account holders must wait until age 59 1/2 in order to withdraw money from their 401(k) plan without being subject to a penalty, according to Forbes. ... Full Answer >Filed Under: -
Q:
What Is a Safe Harbor 401(k) Plan?
A: A safe harbor 401(k) plan is a retirement plan that allows for matched employer contributions, which are fully vested immediately, states the Internal Reve... Full Answer >Filed Under: -
Q:
How Do You Withdraw Money From a Simple IRA?
A: Account holders can withdraw money from Simple IRAs at any time, but if they are under 59 1/2 years old, the distribution is subject to a penalty tax of 10... Full Answer >Filed Under:
You May Also Like
-
Q:
What Are Some Problems With Annuities?
-
Q:
What Are the Terms for Withdrawing Money From Your 401(k)?
-
Q:
What Is the Legal Age to Drive in America?
-
Q:
What Are Some RRSP Rules for People Who Have Reached 71 Years Old?
-
Q:
How Do You Set up a Family Trust?
-
Q:
Where Can You Find Information About SEP IRA Contribution Deadlines?
