With a 401(k), you may distribute funds if you qualify for an IRS distributable event, or if you qualify for a loan or hardship withdrawal. Both Traditional and Roth participants must be age 59 ½ to begin withdrawals from their accounts without penalty.[1] It is best to leave your money in your account to avoid paying high penalty taxes on early withdrawals. Financial advisors recommend that you keep enough money outside of your 401(k) for emergencies and expenses you may have before retirement.
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