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The 401(k) Rules You Should Know in 2025

Failing to heed these rules could cost you your hard-earned savings.

By Kailey Hagen – Updated Nov 14, 2024 at 4:47PM

Key Points

  • 401(k) withdrawals under 59 1/2 face a 10% early withdrawal penalty, though there are some exceptions.
  • Required minimum distributions (RMDs) from a 401(k) start at age 73, with a penalty of up to 25% for under-withdrawals.
  • Annual 401(k) contribution limits are $23,000 in 2024 or $30,500 for adults 50 and older ($23,500 and $31,000, respectively, in 2025).
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