You may begin to withdraw money from your 401(k) plan at what age, assuming you have stopped working?

You can begin to withdraw money from your 401(k) plan at age 59.5, assuming you have stopped working. This age marks the point at which the Internal Revenue Service (IRS) allows individuals to take penalty-free distributions from their retirement accounts. Withdrawals made before this age may incur a 10% early withdrawal penalty in addition to any ordinary income taxes that may be required.

While some plans may allow for withdrawals at age 55 if you leave your job, the general rule for avoiding penalties is set at 59.5 for most accounts. Retirement at ages 62 or 65 typically refers to the age when individuals may begin receiving Social Security benefits, but this does not apply specifically to the withdrawal rules of 401(k) plans.