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by deb1047 on January 18th, 2007

deb1047

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I will be 59 1/2 in a few months and would like to withdraw some of my 401K money at that point. I am being told by my company that I can not do this because I am still employed by them (they have not contributed to this fund). Is this correct?

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Answers. 6 helpful answers below.

  • by msherb on April 23rd, 2007

    msherb

    You cannot touch your 401k, except by loan, unless you quit, are fired or retire. It may be your money but there are rules your company MUST follow to allow tax help according to the IRS guidelines of ALL 401k's.

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  • by JUSTNORMAL on January 18th, 2007

    JUSTNORMAL

    From the best of my knowledge yes you can take it out, but with a huge penalty, it is your money. I dont know where you live or what you signed for all this, but if all else fails, call someone from Human Resources and get to the bottom of it.

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  • by OneUp on July 23rd, 2008

    OneUp

    See my answer to similar question above. I got my money out at 59 1/2, but I rolled it over to an IRA. If you withdraw it outright you will have to pay tax on it, but not the 10% penalty if you are over 59 1/2. At one point I borrowed money from my 401K to pay off my home mortgage; I repaid the money and did not have to pay any tax or penalty. This worked out well for me; it may be an option you might like to investigate.

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  • by Kyleegirl on July 20th, 2008

    Kyleegirl

    answer # 3 is correct

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  • by Kyleegirl on June 8th, 2008

    Kyleegirl

    YES , you can if it is a 401K or 403B and you are 59 1/2, . You will not have a penalty but WILL be taxed. This will not include matching money , and DOES NOT apply for 457 deferred comp. (for those plans you must separate service) nor does it include ESOP and Money matching plans. Call HR or better yet, call the company holding the funds.

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  • by rgf2008 on July 19th, 2008

    rgf2008

    You can borrow against it but the only way to withdraw is to quit the job.
    If you need the money just quit. Pay the early withdawal fees.

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You're reading I will be 59 1/2 in a few months and would like to withdraw some of my 401K money at that point. I am being told by my company that I can not do this because I am still employed by them (they have not contributed to this fund). Is this correct?

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