is there a certain age to take out all of 401k?

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  • B
    Lv 7
    3 years ago

    any withdrawal is taxable, plus a penalty if you are under 59 1/2

  • 3 years ago

    At age 59 1/2 you can start withdrawing from a 401k without penalty.

    At age 70 1/2 you MUST start withdrawing from a 401k (or there WILL be a penalty). Further, you have to comply with a withdrawal schedule that specifies how much of your 401k you must withdraw per year.

    I started somewhere in between those two ages.

  • ?
    Lv 7
    3 years ago

    it won;t matter, any time you take a 401(K) withdrawal it will be taxable

  • Kini
    Lv 7
    3 years ago

    Read up on how it works.

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  • 3 years ago

    You must take required minimum distributions (RMD) beginning April 1 of the year after when you turn 70 1/2. If you are still working, you can delay that until April 1 of the year after you retire.

  • 3 years ago

    Over age 59.5, there is no 10% penalty.

    However, it is still subject to income tax. As such, it is rarely a good idea to take it all out at once.

    Sit down with a tax person before you do anything.

    For example: I knew someone who wanted to pay off his mortgage. He was in his 60s, so he withdrew $120.000 from his 401k to pay off the mortgage. He now is on a payment plan with the IRS for the almos $40,000 in income taxes he now owes.

  • 3 years ago

    how do go about taking out all your 401k, im retired

  • 3 years ago

    age 59

  • 3 years ago

    18

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