When can I cash out my 401k without penalties?

Answer by  tamarawilhite (17883)

You must be at least 59 1/2 years old to cash it without having to pay the 10% penalty. You will, though, owe income taxes on the amount.

Answer by  tamarawilhite (17883)

This can only be done if you are over 59 1/2 years of age or classified as disabled, thus unable to work.

Answer by  primatefreak (1616)

Original concept of 401K,someone 59 1/2 of age to supplement their social security. If you cash out before this age, you lose 30-40% to penalty fees and taxes.

Answer by  oddflash (902)

Unless your company has other requirements you can cash it out without penalties at full retirement age which is usually 65 but may be as high as 70 depending on when you were born. There are other circumstances which may allow you to cash out your 401k without penalties at an even lower age.

Answer by  belle39 (966)

You can cash out your 401k when you turn 59 years old or retired. If you withdraw before this age, you're subject to a ten percent penalty.