When and How Can I Take a Distribution from My 401(k)?
Distributions allow you to access your 401(k) funds, but the timing and purpose matter greatly for taxes and penalties.
When Can You Take a Distribution?
Age 59½: You can take penalty-free withdrawals.
Separation from service: If you leave your job at age 55 or older, you can withdraw without penalty.
Required Minimum Distributions (RMDs): Must begin by age 73 (if turning 73 in 2025 or later).
Early Withdrawals (Before Age 59½)
Typically subject to a 10% penalty plus income taxes.
Exceptions may apply (e.g., disability, substantial medical bills, birth/adoption of a child).
Other Options
Rollovers: Move your 401(k) to another employer plan or IRA without taxes.
Installments: Some plans offer scheduled payments instead of lump sums.
How to Request a Distribution
Log in to your 401(k) portal and navigate to the "Withdrawals” menu section and complete the online request form; or
Contact NestEggs if you're unsure about eligibility or options.