When Can You Start Drawing From a 401k
To withdraw funds from your 401k, you typically must meet certain conditions. Reaching age 59½ is one way to qualify. If you’re younger than 59½, you may be able to make penalty-free withdrawals if you leave your job after age 55 (or if you’re disabled or have certain medical expenses). You can also take a loan from your 401k, but you’ll need to repay it with interest. Borrowing from your 401k can be risky, so it’s important to weigh the pros and cons carefully before taking one out. Withdrawals before age 59½ are subject to a 10% penalty tax, in addition to ordinary income taxes, unless an exception applies.
When Can You Access Your 401k Funds?