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No, this is your money. 401k (including matching $) is paid into an account you control. You can use it anytime, but if you do before some age (65?) there will
by kmonsen 10y ago
No, this is your money. 401k (including matching $) is paid into an account you control. You can use it anytime, but if you do before some age (65?) there will be tax penalties.
- Jtsummers 10y ago59 1/2. For Traditional 401(k), you owe the taxes on it and an additional penalty if you withdraw early. You're required to take distributions from it starting at 70 (69 1/2?), because the feds want their tax dollars. Roth 401(k) plans are less common, you'd owe a penalty but not taxes since it's pre-tax money. No mandatory distributions because they've already gotten your money. IRAs are the same. HSAs (mentioned elsewhere) are tax-free if distributions are spent on medical costs. For non-medical costs, you owe taxes and a penalty. After age 65 you'd only owe taxes.