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Guide to Taking Money Out of Your 401(k)

You may need to take money out of a 401(k). Here's what you need to know.

By Christy Bieber – Updated May 15, 2025 at 5:36PM

Key Points

  • Withdrawals from a 401(k) after age 59 1/2 are penalty-free.
  • Early withdrawals face a 10% penalty unless exceptions like disability or the Rule of 55 apply.
  • You can avoid taxes and penalties if you roll over 401(k) funds into another 401(k) or an IRA.
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