Ask Terry Questions 401k withdrawl at 591/2

401k withdrawl at 591/2

By Terry Savage on January 26, 2024 | Financial Planning / Retirement

Hello . At 59 1/2 what is the penalty to withdraw from my 401k? Is it 10 or 20 percent? Thanks in advance.

Terry Says

It’s 10% — PLUS, you must pay ordinary income taxes on the amount withdrawn.
AND you lose all future tax-deferred growth ofyour money.
Can’t you come up with another way to solve your problem???

And do ask if your company plan will allow a loan (which you must repay) instead of a withdrawal.

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