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3 Things to Know About 401(k) Distributions in 2025

If you've saved for retirement with a 401(k), understand when you can start taking distributions, your withdrawal options, and what you should know about early distributions.

By Motley Fool Retirement Team – Updated Nov 25, 2024 at 6:50 PM

Key Points

  • 2024 401(k) contribution limits are $23,000 for under 50s, $30,500 for 50 and older.
  • Qualified 401(k) distributions are tax-free over age 59 1/2, or post-55 if job separated.
  • Early 401(k) withdrawals incur a 10% penalty plus taxes, affecting future growth.
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