You can withdraw money from your 401(k) penalty-free at age 59½. The withdrawals will be subject to ordinary income tax based on your tax bracket.2A 10% penalty is normally assessed on those under 59½ who make anearly 401(k) withdrawalunless you're facing financial hardship, buying ...
With the exception of the Roth IRA, which is funded with after-tax dollars, traditional retirement, pension and 401K accounts are typically funded with pre-tax dollars. Whether your employer withholds your contribution from your paycheck, or you take a tax deduction when you file ...