What does the average 401(k) balance by age mean?

“What the (average 401 (k) balances by age) tells us is investors are not saving enough to afford a comfortable retirement,” said Anthony Ogorek, president and founder of Ogorek Wealth Management. Let’s also look at average 401 (k) balances by age band, which shows how much account holders have saved during each decade of their life.

When can I access my old 401(k) plan?

You can access funds from an old 401 (k) plan after you reach age 59½ even if you haven't yet retired. The best idea for 401 (k) accounts from a previous employer is to roll them over when you leave a job. You won't be hit with penalties if you withdraw from your old accounts if you're at least age 59½.

Is there a minimum withdrawal age for a 401(k)?

But contrary to popular belief, there isn’t actually a minimum withdrawal age for a 401 (k), explains Luke Pavlatos, senior financial consultant with John Hancock Advice. “Technically speaking, there is no minimum withdrawal age,” Pavlatos says. “If someone separates from their employer and is deemed eligible for a distribution, it can be taken.”