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Yes, the IRS says you can withdraw some or all of your 401-k for a few different reasons. One caveat though, your company plan may not allow it.

Just because the IRS says you can, ultimately it is the rules within your company plan.

Most plans will allow you to borrow some money or withdraw for hardships.

A rule of thumb is not to invest to much in your own company stock or contribute over your company match. Remember, you are not really saving any Taxes....You are just postponing the tax calculation and being a good steward for the IRS`s share.

If you convert to Roth and use the Collective Trust Strategy you will be FAR better off.

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Q: Can you withdraw from your 401K while still working?
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Related questions

How can I get a 401k to help with retirement?

What you do is deposit money into the 401k during your entire working career. Then, when you retire, the money is there for you to live on (provided that you don't withdraw any money). Social security and any pension you get is not enough to live on in this economy. With the 401k, you can have extra funds when you aren't working.


Can you legally withdraw your 401K after age 62 while still working full time?

One can legally draw a 401K at any time. The only things to consider are that if you draw your 401 K too early, you would have to pay hefty taxes on the funds. It is best to consult an attorney to determine whether any taxes would apply in you particular situation.


Will the government borrow from your 401k?

No. They can tax it if you withdraw from it, but borrow no.


At what age can you withdraw from 401k without penalty?

You can withdraw beginning at age 59 1/2.


Can you withdraw my total amount of 401K after age 68?

yes


Are you penalized if you withdraw your 401K after age 64?

Ask your 401k provider. I go thru John Hancock and they do not penalize


Can you withdraw your 401K and take unemployment in Delaware?

sorry but no it is almost impossible


Can you withdraw 401k after discharge in bankruptcy?

The MAX amount you can draw is 300k.


Can you withdraw funds from a 401k before age 59 12?

You can, but you will be fined.


Is it adviseable to move my current 401K to an FDIC insured institution?

If you withdraw from your 401k it might come with a penalty. It might be wise to leave your money in and ride the wave back up when the market rebounds. So is there any way to not be penalized to withdraw from 401k with out a medical reason?


Can I make a 401k partial withdrawal while still working since I am 61 years old?

only if your plan allows in-service withdrawals....ask your HR or payroll dept.


Do you have to pay taxes on a 401K at age 59 12?

when you withdraw the money, yes.