When can I get access to the money?
- What's an individual 401(k) plan?
- When are individual 401(k)s a good deal?
- Who can contribute to one?
- When can I get access to the money?
- What if I need the money before retirement?
- How should I invest the money?
- How do my withdrawals get taxed in retirement?
- Does an individual 401(k) plan make sense for me?
- Who can help me set up and administer a plan?
Typically you need to keep the money invested in the retirement account until you reach age 59 ½. Withdraw money before then and you'll be hit with a 10% early withdrawal penalty, on top of the income taxes you'll pay on the withdrawal.
There are a few exceptions to the early withdrawal rule. Each plan's rules vary, but you may be able take money out of your retirement account penalty-free before age 59 ½ if you use it for:
- Purchasing your first home
- Expenses after the onset of a sudden disability
- Higher education expenses
- Payments you make to prevent eviction or foreclosure.
However, there are options for getting at the money if you really need to.
