Here are some examples of reasons often accepted for early withdrawals:
- You leave your job the year you turn 55.
- You leave your job at the age of 50 if you work in federal law enforcement, customs, border protection, traffic control or federal firefighting.
- You divorce and the court orders you to split up the funds in your 401(k) with your ex-partner.
- You were called to active duty as a military reservist.
Your ability to withdraw funds from your 401(k) early without penalty will vary, depending on what plan you have.