- 2,264
I started a 401K last year and I'm over 60. What are ramifications if I make a withdrawal on pretax deposits? Can it be done? Don't need the money but I forget what happens after 59 1/2. Thanks.
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Thanks. Did a bit of research and agree but would have to check if employer allows withdrawals. You never know, might have to take an unplanned vacation.Yes and No. Even though there are no tax penalties on withdrawals after age 59 1/2, 401k's are sponsored by employers; therefore, the plan will specify what you are allowed to do while you remain an employee. If they disallow a withdrawal, you should be allowed to borrow up to 50% of the value. Any amount you fail to repay will simple be classified as a distribution of income. Since you are 60 years of age, there is no premature distribution penalty. An unpaid loan would have the same effect as a withdrawal.