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Withdrawal Rules for 401(k) Plans

Don't withdraw money from your 401(k) without reading this.

By Motley Fool Retirement Team – Updated Nov 23, 2024 at 11:01 AM

Key Points

  • Withdrawals from a 401(k) before age 59 1/2 can incur a 10% penalty plus income tax.
  • Qualified distributions from a 401(k) are tax-advantaged after age 59 1/2 and mandatory starting at age 73.
  • Hardship withdrawals may be penalty-free if the money is used to cope with specific financial hardships.
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