Assuming you have a 401(k) through your employer, you are typically able to withdraw funds from your account once you reach retirement age. However, some employers allow for early withdrawal, though this typically comes with a penalty. If you have an employer-sponsored 401(k), you may be able to withdraw funds early if:
-You leave your job (at any age)
-You become disabled
-You require medical expenses
-You have significant financial hardships
If you withdraw funds from your 401(k) before you reach retirement age, you will typically be subject to a 10% early withdrawal penalty, plus you will have to pay income taxes on the amount you withdraw. For example, if you withdraw $10,000 from your 401(k) at age 35, you would owe $1,000 in penalties and taxes, leaving you with $9,000.
Withdrawing from your 401(k) should generally be a last resort, as you will lose out on years of potential growth and compound interest. If you do need to withdraw funds early, be sure to consult with a financial advisor to discuss your options and minimize the impact on your future retirement savings.
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