Can you withdraw money from a 401(k) when you retire?

You can withdraw money when you retire, take out a 401 (k) loan, make a hardship withdrawal, or roll over your funds to another account. You can also make an early withdrawal, but it will be subject to penalties if you do. 401 (k)s are incentivized plans to help Americans save for retirement.

Can I withdraw money from my 401(k) early?

And, after age 72 or 73, depending on the year you were born, you must take required minimum distributions (RMDs) from either a 401 (k) or an individual retirement account (IRA). Here's a look at the 401 (k) withdrawal rules and how you can avoid the IRS 10% penalty if you withdraw money from your account early.

Do you have to pay back 401(k) withdrawals?

Pros: You're not required to pay back withdrawals of the 401 (k) assets. Cons: Hardship withdrawals from 401 (k) accounts are generally taxed as ordinary income. Also, a 10% early withdrawal penalty applies on withdrawals before age 59½, unless you meet one of the IRS exceptions. Sign up for Fidelity Viewpoints weekly email for our latest insights.