I work in the financial services industry and have had to answer this question for clients. I have been told that it is the day after the 6th month anniversary of your birthday. Not the day of. So if you were born 1/1, you could withdrawal 7/2 without the 10% penalty. Be sure to inquire if your employer 401(k) allows for in-service withdrawals if you are still employed with the company who’s sponsoring the 401(k)you want to withdrawal from. I also heard that if you retire from the company maintaining your 401(k) and you keep the funds at the 401(k), then you can make withdrawals after age 55 without the penalty...and this is separate from a 72T.
Call you local Social Security Admin....seriously, I found them to be very helpful - probably because they are overstaffed and need the work.
Worth a try!!
Also - any good broker should have that answer. I think I talked to Schwab about when I needed to start - and they send me a statement every year on how much I have to withdraw.
This is what I'm doing.
Good question. Glad you asked it. Been wondering about that myself.
O.K., I’m a dumb ass, and shouldn’t be giving advise, but that has never stopped me before.
1. Call you investment manager at the firm that is managing your funds. He/She can tell you to the hour of when you can withdraw.
2. Next suggestion. Don’t do this!! You are gonna pay a penalty that is painful!! Your account manager will also tell you this.
3. Wait until you are seventy to begin to withdraw.
4. Withdraw no more than 4% annually from your account, and you should never deplete it.
This information is provided by a person who is working to get his IQ into double digits.
But the government changes rules so often, I'd check with a professional. I had no 401K at the time, I had retired from nuring to be a full time goat hearder. Hubby retired at 51, took a buy out from Ameritec and invested it in an IRA. Don't know if that helps you or not, but certainly check with a pro. on what you can and can not do...
Consider how your funds are set up.
I have an IRA that is an annuity. Although I am now eligible to withdraw, I haven’t started. The reason: it is paying a better ‘mandatory’ rate than current CD’s.
When I set it up fifteen years ago, it had a minimum mandated rate of 4.5%. Currently, even the best CD’s are paying only about 2%.
Since I don’t ‘need’ the funds to live on at present, I am just letting it ride.
I don’t HAVE to begin withdrawing until age 72, IIRC. That is still a few years away.
Also, so much of all the other stuff people replied is so wrong. I answered only the question you asked and didn’t assume any other details. Be careful.