The IRS allows penalty-free withdrawals from retirement accounts after age 59 and requires withdrawals after age 72 these are called Required Minimum Distributions, or RMDs. Early withdrawals from an IRA or 401k account can be an expensive proposition because of the hefty penalties they carry under several circumstances. Check out Beem to file your federal and state taxes without any hidden charges and get the maximum refund.
Also Know about: How to Plan Your Finances
Benefits of a 401(K)
The 401k can be a boon to your retirement plan. It gives you the flexibility to change jobs without losing your savings. But that all starts to fall apart if you use it as a bank account in the years preceding retirement. Your best bet is usually to consciously avoid tapping any retirement money until you’ve at least reached the age of 59.