When I Can Withdraw Money From My 401K? 
Most people would want to wait until they are at least 59 1/2 years old to withdraw money from their 401k because that is the age when penalty free withdrawals can be taken . You can take withdrawals earlier , but there will be a 10 % penalty for early withdrawal . There are exceptions to the 59 1/2 age requirement : You become totally and permanently disabled . You terminate employment through permanent layoff , termination , quitting or taking early retirement in the year you turn 55 , or later . Pay for medical care up to the amount allowable as a medical expense deduction in the same year as the medical expense was incurred . Your withdrawal is a response to a qualified domestic relations order . You are required to begin 401k withdrawals by April 1 of the year following the year in which you turn 70 1/2 . Regardless of when you take your withdrawal from your 401k , the amount you take out will be taxed as ordinary income for that tax year . You should always seek out a qualified financial professional for help in these situations prior to taking action . 