401k withdrawal
Tapping nest egg
A 401k withdrawal is money taken out of a 401k retirement account before or during retirement.
Early withdrawals—those made before age 59½—typically incur tax penalties, making them costly: She took a 401k withdrawal to cover medical bills.
At retirement age, withdrawals become the primary way to access accumulated savings.
- retirementLeaving the workforce permanently
- golden yearsLater life stage
- retirement accountTax-advantaged savings vehicle
- penaltyPunishment for wrongdoing
- earlyOccurring before expected
early access · distribution · lump sum · taxes · savings · rollover · hardship · financial hardship · loan · vesting · employer · contribution · IRA · nest egg · rainy day fund · cash out · withholding · required minimum
401k withdrawalretirement savings
Money reserved for post-career
wealth accumulation · retirement funding · dollar-cost averaging · compound growth · retirement planning
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