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What is the maximum amount that can be withdrawn from a 401(k) after retirement?

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Quick Answer

An individual can withdraw the entire 401(k) balance in a lump-sum distribution immediately after retirement, says CNN Money. Other options include rolling the money into an Individual Retirement Account (IRA), purchasing an annuity or asking for periodic disbursements.

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Full Answer

Those who want to take advantage of the tax-deferred benefits for a longer period of time can ask for periodic disbursements, roll the full sum over into an IRA or use the amount to purchase an annuity, according to CNN Money. All of the funds must be withdrawn by the time the individual reaches 70 and a half years of age, states CNN Money.

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