Holders of a 401(k) face no government-defined maximum limit on withdrawals, although individual plans may impose restrictions on the withdrawal amount available to the plan holder, according to Smart401k. After reaching the age of 70 1/2 or upon retirement, 401(k) plans are subject to a required minimum distribution amount.
Retirees may withdraw money from a 401(k) plan in either lump-sum payments or in scheduled, recurring payments, according to Smart401k and CNN Money. Certain employer-based 401(k) plans may require that holders adhere to a specified withdrawal plan, with penalties imposed on deviations. Withdrawals made in installments typically occur as fixed installments, variable installments or lifetime expectancy installments.