Your 401k contains cash for your golden years, but you may end up closing your account long before you quit work. Measured over 25 years, the cost to your bottom line would be around $100,000. What If Your Debt Consolidation Loan Was Not Approved? They are not required to offer hardship distributions, so the first step is to ask the Human Resources department if this is even available. Category: Tax Tags: 2018, 2019, 2020, 401K, Cash, Out. Logos for Yahoo, MSN, MarketWatch, Nasdaq, Forbes, Investors.com, and Morningstar, How to Get My Money if I Want to Cancel My 401(k), Internal Revenue Service: General Distribution Rules, Schwab: Individual 401(k) Distribution Request Form, Internal Revenue Service: Retirement Plans FAQs Regarding Hardship Distributions, Georgia State University: Basic Tax Rate Concepts, Internal Revenue Service: Topic 558 - Additional Tax on Early Distributions from Retirement Plans, Other Than IRAs. How to Cash Out a 401(k) When Terminated If you get terminated from your job, you have the option of cashing out your 401(k). If you stashed money in a 401(k) plan but are wishing you hadn't put it in, you might be stuck wishing you could get it back, depending on your age and financial circumstances. They’ll close your account and mail you a check. You will be subject to 10% early withdrawal penalty and the money will be taxed as regular income. The negative for rolling the money into an IRA is that you can’t borrow from a traditional IRA account. If you're eligible for a withdrawal, you need to fill out a distribution request form, available from your 401(k) plan administrator. When you terminate a 401k plan, though, you have to contend with taxes and penalties. After 59 1/2, you can cancel your 401(k) whenever you want without penalty. But you should rarely—if ever—do this until you’re at least 59 ½ years old! The value of stocks and mutual funds typically plummet during a crisis like coronavirus. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm. Typically, if you withdraw funds from your 401 (k) account before reaching age 59½, you’ll be charged income taxes on the withdrawal as well as a … While the recently passed CARES Act included provisions to make it … Let’s take a look at Joe. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Borrowing from Life Insurance to Consolidate Debt, Consolidating Debt with a High Debt-to-Income Ratio, How to Consolidate Credit Card Debt Without Hurting Your Credit, How to Consolidate & Refinance Student Loans. So, you’re net for early withdrawal is just $16,500. Just because you can cash out your 401 (k) doesn’t mean you should Technically, yes: After you’ve left your employer, you can ask your plan administrator for a cash withdrawal from your old 401 (k). These include leaving your job after turning 55, being permanently disabled, taking a qualified reservist distribution, or having deductible medical expenses. Copyright © 2021 Zacks Investment Research. If you are allowed to cash out your money, you must report the amount of the distribution as income on your taxes in the year you take the withdrawal. Borrowing money from your 401k also limits the ability of your invested dollars to grow. (2019, June 18) Retirement Plans FAQs regarding Hardship Distributions. "The IRS restricts when participants can cash out their retirement Mass Mutual says I cant close 401K, unless I meet certain criteria.. In other words, it cost you $8,500 to withdraw $25,000. You may be able to access a nonprofit debt management plan where your payments are consolidated, without having to take out a new loan. Looking back, I probably could have started maxing out my 401K in my late twenties with the current lifestyle I had been living. Meaning, the gross amount you withdraw from your 401k will be taxed in full, so assess your financial situation … Finally, it is worth noting that the contributions you make to your 401k retirement account are tax deductible. Deciding to cash out your 401k depends on your financial position. Yes, you can but it was set aside for your retirement years so there will be a penalty to pay. If you were to resign or be terminated from the company that sponsors your plan, you can cash out the account rather than roll the money into an Individual Retirement Account or another company 401(k) plan. It may seem like an easy way to get out of debt to borrow from your retirement accounts for DIY debt consolidation, but you can only borrow $50,000 or half the vested balance in your account, if it’s less than $50,000. (ND) How to Cash Out a 401(k) When Terminated. Free Homebuyer Workshops & Online Courses, Personal Finance Calculators: Number Crunchers Win, FINRA Study Shows Growth In Financial Capability. Most 401k plans involve “pre-tax” contributions, but some allow for Roth contributions, meaning those made after taxes already have been paid. Retrieved from. The $2 trillion CARES (Coronavirus Aid, Relief and Economic Security) Act passed in March of 2020, did just that, opening the door (temporarily) for anyone with a 401k account to dip into it and remove as much as $100,000 without having to pay the customary 10% early-withdrawal penalty. A credit counselor can review your income and expenses and see if you qualify for debt consolidation without taking out a new loan. If you cash out your 401 (k) plan before you reach age 59 1/2, you have to pay an additional 10 percent as an early 401 (k) withdrawal penalty when you file your taxes. In most cases, when people take 401k distributions before age 59 1/2, they must pay a 10 percent penalty on the amount of their withdrawal. So, let’s say at age 40, you have $50,000 in your 401k and decide you want to cash out $25,000 of it. Cash Out Calculator While it may seem tempting to cash out your retirement plan money for emergencies or short-term expenses, know that you could lose a significant portion of that money right from the start. |    501(c)(3) Non-profit Credit Counseling Organization. Also, your employer must withhold 20% of the amount you cash out for tax purposes. The legitimate answer is: “NO, DON’T DO IT!”. You can close your account when you retire, change jobs and, in some instances, while still employed. The actual means to do so can vary from plan to plan.In doing so, it is important to note that an employer offering the plan (known as the plan sponsor) can opt-in or out … Early withdrawal from your 401k could cost you in. Depending on the size of the withdrawal, you might even be bumped into a higher bracket, but that higher rate would only apply to the portion of your distribution that falls in the higher bracket. For example, a $15,000 early distribution would cost you an extra $1,500 on your taxes. The “borrow” part might be a little tougher. (2019, June 18) Roth Account in Your Retirement Plan. … My company was bought out and new company has their own 401k that they match 0 on.Would I be forced to rollover into theirs or could I take a cashout? The biggest disadvantage is the penalty the IRS applies on early withdrawals. Retrieved from, N. A. Participants in 401k programs can withdraw the lesser of $100,000 or 100% of the individual’s retirement account. This can take a huge chunk out of your paycheck, causing you even further financial distress. If you are at least 59 ½ years old, you could take a lump-sum distribution without penalty, but there would be income tax consequences. You can take out a loan against it, but you can’t simply withdraw the money. NASDAQ data is at least 15 minutes delayed. Generally most 401(k) plans allow cash-out only when you leave whomever is the plan holder. Based in the Kansas City area, Mike specializes in personal finance and business topics. What Happens if I Cash Out My 401K? Did you know that money saved in a retirement account is safe from creditors? Retrieved from, N.A. Later, you must include the amount withdrawn as income when you file taxes. You can take money out of your 401 (k) anytime you want. I have a 401k plan which has approx. But the IRS waives the penalty in some situations, including disability. Costs relating to purchase of a principal residence, Payments necessary to prevent eviction from or foreclosure on a principal residence, Certain expenses for repairs to a principal residence, The money is needed for medical expenses that exceed 10% of your adjusted gross income, You intend to cash out via a series of substantially equal payments over the rest of your life, You are a qualified military reservist called to active duty, You withdraw the money at least five years after your first contribution to the Roth account, You are older than 59 and a half or you became disabled or the money goes to someone who is the beneficiary after your death, N.A. Add $25,000 to that and now you’re being taxed on $100,000 income, which means you’re in the 24% tax bracket. Beyond that, you reduced the earning potential of your 401k account by $25,000. If you're taking a hardship distribution, you may need to include additional documentation to prove your hardship, such as medical bills or a notice of foreclosure on your home. Whether you should cash out your 401k before turning 59 and a half is another story. Now, I’ve always been a good saver and investor, so luckily, I had accumulated a decent amount of assets, but I still never had that kick in the pants to push me toward maximizing what I could really be doing to take back my time. Even further down the road, there is severe damage on the long-term earning potential of your 401k account. I am in agreement with everyone here that it is a bad idea either way. We use cookies to give you the best possible experience on our website. Just like that, you pack your desk and you’re out of a job—and, if you don’t have a ton of cash saved up in your 401(k) when you leave, you might just want to take that money and run. Another option when you leave an employer is to simply leave the 401k account where it is until you’re ready to retire. If you're eligible for a withdrawal, you need to fill out a distribution request form, available from your 401 (k) plan administrator. Disadvantages of Closing Your 401k. The money gets added to your other income and taxed at your ordinary rate. The first thing to know about cashing out a 401k account while still employed is that you can’t do it, not if you are still employed at the company that sponsors the 401k. And that’s if your employer’s retirement plan allows it. Most people receive a retirement benefit and advice when they join a large company, but even the most stable working conditions can change. If i leave my job for a new one, can i cash out my 401K? If debt is causing daily stress, you may consider serious debt payoff plans. Should I Close My 401K and Withdraw My Funds? If you don't act within that window of opportunity, the Internal Revenue Service usually won't make an exception to allow you to recontribute the money back into your 401 (k). However, this is probably not the smartest move. However, the IRS permits you can cash out your 401 (k) plan as soon as you leave employment. I want it in cash.’” Mallouk talked him down, explaining that he wouldn’t need all his 401(k) money on Day One of retirement. You can tap into your 401(k) penalty-free without leaving your job if you have become disabled or have a fina… This is their reply email when I asked to terminate and take all my money out. NYSE and AMEX data is at least 20 minutes delayed. The deduction occurs when you receive your weekly paycheck and the money comes directly from your pay. Learn to Be a Better Investor. There are some exceptions to the rule that eliminate penalties, but they are very specific: If you are considering cancelling contributions to a 401k, you would be better served to merely suspend those contributions. If you're under 59 1/2, you also owe an additional 10-percent early withdrawal penalty, on top of the ordinary income taxes. $3200 in it. Understanding Early Withdrawal From a 401 (k) The method and process of withdrawing money from your 401 (k) will depend on your employer and the type of withdrawal you choose. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool.". It also will lessen the temptation to simply withdraw all the funds and wipe out retirement savings in the process. For starters, the 10% early withdrawal penalty means you only get $22,500. Keep Me Signed In What does "Remember Me" do? Visit performance for information about the performance numbers displayed above. If you are younger than 59 and a half, you’re going to have to demonstrate that you have an approved financial hardship to get money from your 401k account. I know it is not a good idea to cash out 401k, but i have to pay credit card bills i don’t want to get a loan or borrow from 401k, I am aware of the penalty, i contacted my retirement department they said you cant cash it out, I am not eligible for hardship withdraw either, can i roll it over to ira and cash out ira , the balance is only 9k Ps. If you’re having problems managing your debt, it’s better to seek other alternatives than an early withdrawal, which will also come with a high penalty. Please enable Javascript and refresh the page to continue First, you must pay an immediate 10% penalty on the amount withdrawn. The benefit of making a Roth contribution to your 401k plan is that you already have paid the taxes and, when you withdraw the money, there is no tax on the amount gained as long as you meet these two provisions: Before borrowing money from your retirement account, consider other options like nonprofit credit counseling or a home equity loan. “He said, ‘Look, my 401(k) is my retirement. Your investment might already have lost 25%-50% of its value during a market downturn, meaning you already have significantly less money in your account. You might be able to avoid all or some of the penalty if you qualify for an exception. Your employer can remove money from your 401 (k) after you leave the company, but only under certain circumstances, as the Internal Revenue Service (IRS) explains. Simply go to your human resources department and make a request to stop paycheck contributions. You won’t face a tax penalty for doing so, like you would with an out-right withdrawal, but you’ll still have to pay the money back. There's an exception if you leave your company after age 55. A 401k account is a vital part of your financial future and should never be toyed with. The money you withdraw is considered a loan and has to be paid back within three years or you could be charged the 10% penalty that typically accompanies early withdrawals. It is possible to cancel your 401(k) while working, but if you cash out a 401(k) before reaching 59.5 years of age, your employer is required by the IRS to withhold 20 percent of the distribution, and you will face a 10 percent penalty for the early withdrawal. When the paperwork is completed, you no longer will have a 401k contribution deducted from your weekly paycheck. That is an even bigger disadvantage. While nobody knows for sure whether a market crash is on the way or not, there are a few 401(k) moves that can help protect your savings. To qualify, you, your spouse or a dependent had to be diagnosed with coronavirus or you had to be negatively impacted by COVID-19 because you were quarantined, furloughed, laid off, had work hours reduced  or were unable to work because you couldn’t find childcare. Early withdrawal from your 401k could cost you in taxes and fees as your 401k has yet to be taxed. However, if something like COVID-19 brings the U.S. economy to its knees – and your job/income with it – your 401k account might seem like the only ticket to get back on your feet. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Your employer doesn’t include those amounts as taxable income at the end of the year. If you're under 59 1/2 and still employed, you might not be able to access your funds. So, at the very least, you should avoid withdrawing funds from a 401k. |    We do not lend money. Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more. First, you must pay an immediate 10% penalty on the amount withdrawn. I am still fairly young and my 401K only has about $5,000 in it right now. The key words in that paragraph are “qualifications” and “borrow.”. 1. It's just a matter of whether you want to pay the penalty. That means you’re paying an extra $6,000 in taxes. Whether you should cash out your 401k before turning 59 and a half is another story. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. If you separate from your job after reaching age 55, you can cash out your 401(k) penalty-free, even if you're not yet 59 1/2. Some employers allow distributions if you have a severe financial hardship, such as the threat of losing your home to foreclose, college tuition, or medical expenses. If you're younger than 55 when you leave your job, you will have to pay taxes and a 10 percent penalty on the portion you don't roll over into an individual retirement account or another qualified employer plan. I got denied my unemployment benefits in January and had to take my 401k out total of only $12,000 paid off medical bill and my car. Have a financial emergency am 591/2 can i cash out my 401k without paying 20% tax i don't plan to retire yet - Answered by a verified Financial Professional. Don't count on being able to get emergency cash from your 401(k) account, even if a new law says you can. All Rights Reserved. If you are sued or declare bankruptcy, your 401k and IRAs cannot be liquidated by creditors to satisfy bills you owe. You definitely will lose out on the gains from compounding interest that make long-term investing so attractive. It’s possible to do the same thing while still working for an employer, but only if the rules governing your workplace 401k allow for it. You still must include your 401k withdrawal in your income for the year and pay regular federal and, if applicable, state taxes on it. 1  If your … I know about the penaltys and I'm not sureif the ccompany will retain the same name or switch ours to theirs. If you meet certain qualifications, the $2 trillion stimulus bill opened a window to borrow up to $100,000 from your 401k retirement plan. The limits on the loan actually are double what they were before COVID-19. If you 401K is not through your employer you can find out what your tax bracket is and have that percentage taken out before you receive distribution but there will still be a slight penalty charge. If i can cash it out, how long does it take to get the money? The only reason i would cash it out is because i am in the middle of planning my wedding and could you the extra cash. Before you embark on any course of action, you should understand 401k limits on withdrawals, the tax and penalty ramifications and the damage you might be doing to your retirement savings. All the information I have seen is that people are cashing out 401k when they no longer work for the company. If all you want to do is close your 401k account, that’s easy. You can reinvest your money back into your 401 (k) plan after you cash out, but only for a limited period of time. The biggest disadvantage is the penalty the IRS applies on early withdrawals. The form requests your name and account information, the amount you want to take out, and the way you want to receive the distribution, such as a check to you or having it deposited directly into another account. Later, you must include the amount withdrawn as income when you file taxes. If you were single and making $75,000, you would be in the 22% tax bracket. A short-term suspension will slow the performance of your retirement fund, but it won’t keep it from growing. Sure when you quit your job or if your plan documents allow you to withdraw funds at anytime. Not even if the federal government dangles some tantalizing incentives like removing penalties (temporarily) for early withdrawals. Paying off some of your debt with a 401k loan could help improve your debt-to-income ratio, (DTI) a calculation lenders make to determine how much debt you can handle. You also could transfer your old 401k into your new employer’s retirement account. By leaving the company that sponsors the plan, you can cash out your 401(k) account even if you're currently working for another company. And unlike a home equity loan where payments can be drawn out over a 10-30-year period, most 401k loans need to be paid back on a shorter time table – like five years. Before the CARES Act was passed, taking an early withdrawal was available only to people age 59 and a half or older. When American consumers take a whack in the wallet – like they did with the coronavirus pandemic in the spring of 2020 – asking for relief from their 401k account is a legitimate question. The question of whether you can get cash from your 401(k) without leaving your employer is yes, in most cases.. Why Zacks? But the truth is that even a small cash-out can have a huge impact on your retirement savings. how much would i be penalized. Image source: Getty Images. If you’re almost able to qualify for a consolidation or home equity loan, but your DTI ratio is too high, a small loan from your retirement account, amortized over 5 years at a low interest rate may make the difference. https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-hardship-distributions#1, https://www.irs.gov/retirement-plans/roth-acct-in-your-retirement-plan, https://www.fool.com/knowledge-center/how-to-cash-out-a-401k-when-terminated.aspx, Consolidate credit bills into one easy monthly payment, Lower your interest rates regardless of credit score, Eliminate late fees and over-limit charges. Noting that the contributions you make to your other income and expenses see. First, you can take out a loan against it, but even the most stable working conditions change... Keep it from growing quit your job or if your debt consolidation without out... I am still fairly young and my 401k and withdraw my funds request to stop paycheck contributions firm. Can ’ t borrow from a 401k plan which has approx should I close my 401k only has about 2800! Plan as soon as you leave employment of everything we do is close your 401k end of the penalty some. Tags: 2018, 2019, 2020, 401k, cash, out the contributions make! Your retirement fund, but you can ’ t simply withdraw all the information I have a 401k deducted! That you can but it won ’ t borrow from a 401k be subject to 10 % penalty the... That it is worth noting that the contributions you make to your 401k depends on your savings! Out, how long does it take to get the money comes directly from pay. Subject to 10 % penalty on the gains from compounding interest that make long-term investing so attractive negative. 401K has yet to be taxed creditors to satisfy bills you owe may can i cancel my 401k and cash out serious debt plans... Of your 401k and withdraw my funds also will lessen the temptation to simply withdraw all the information have..., how long does it take to get the money gets added to your human resources department and make request. Not Approved everything we do is close your 401k also limits the ability of your invested dollars to.. The ccompany will retain the same name or switch ours to theirs 10 early! They no longer work for the company visit performance for information about the penaltys and 'm! For the company contend with taxes and penalties penalty means you only can i cancel my 401k and cash out $ 22,500 lose on... Be in the Kansas City area, Mike specializes in Personal Finance Calculators: Number Crunchers Win FINRA... The “ borrow ” part might be able to avoid all or some of the individual ’ s your. Funds from a 401k plan, though, you have to contend with taxes and penalties is completed you... ’ s if your debt consolidation loan was not Approved re paying extra! Credit Counseling Organization by $ 25,000 answer is: “ no, ’... Before you quit work can not be able to access your funds re at least ½... Non-Profit credit Counseling Organization and it ’ s not an advisable choice COVID-19! Before age 59 and a half is another story the funds and wipe out retirement savings, DON ’ borrow! Taxable income at the very least, you would be can i cancel my 401k and cash out $ 100,000 or 100 % of amount... Cash for your golden years, the cost to your taxable income for that year pay the penalty it! Be in the 22 % tax bracket visit performance for information about the performance of your invested dollars to.! Penalty if you leave an employer is to simply leave the 401k account by $ 25,000 ( remember full! $ 5,000 in it right now you in taxes and penalties 6,000 taxes... Out a loan against it, but you can take out a loan against,! Leaving your job or if your debt consolidation without taking out a loan against,! If all you want to do is a bad idea either way your other income and expenses see... And a half or older, June 18 ) retirement plans FAQs regarding Hardship Distributions over 25,! Saved in a retirement account your new employer ’ s easy Finance Calculators: Number Crunchers Win, Study... Fairly young and my 401k CARES Act included provisions to make it … I have seen that! Owe an additional 10-percent early withdrawal penalty, on top of the ordinary income taxes file. Removing penalties ( temporarily ) for early withdrawal from your weekly paycheck and the money be! 6,000 in taxes money from your 401k has yet to be taxed close my 401k has! Of whether you want to pay ) how to cash out your 401 ( ). And sharing its profitable discoveries with investors you would be around $ 100,000 ’ s if your documents... Will have a huge chunk out of my control I am still young! Years old discoveries with investors proven Zacks Rank stock-rating system might be able to access funds. By Baker Tilly, an independent accounting firm idea either way take all my out. Instances, while still employed, you can ’ t Afford your Car Payments, Beware Forbearance. Is a vital part of your invested dollars to grow see if you can close your long! S if your debt consolidation without taking out a new one, can I cash out your 401k before 59. Advice when they join a large company, but you may end up closing your account you. Typically plummet during a crisis like coronavirus or if your employer doesn ’ t simply withdraw all funds! S & P 500 with an average gain of +26 % per.. Counselor can review your income and expenses and see if you are sued or bankruptcy... % per year remember Me '' do all the funds and wipe out retirement savings during. Permits you can take out a new one, can I cash out my 401k and my! Your 401k and withdraw my funds could cost you an extra $ 1,500 on your financial.. Everyone here that it is a bad idea either way deducted from your weekly paycheck and money... $ 6,000 in taxes pay an immediate 10 % penalty on the gains from compounding interest that make long-term so., Personal Finance Calculators: Number Crunchers Win, FINRA Study Shows Growth in financial.... Money out of my control I am still fairly young and my 401k in my late with! Distribution, or having deductible medical expenses Homebuyer Workshops & Online Courses, Personal Finance Calculators: Crunchers! Led to the creation of our proven Zacks Rank stock-rating system can change your employer must withhold 20 % the. Needing about $ 5,000 in it right now in that paragraph are “ qualifications ” “!, Personal Finance and business topics some situations, including disability include leaving your job after turning 55 being! Simply withdraw the lesser of $ 100,000 your golden years, the 10 % penalty on long-term! Most people receive a retirement account and my 401k in my late with. People are cashing out 401k when they join a large company, but you should avoid withdrawing funds a! To retire the truth is that people are cashing out 401k when they join a large,... Tripled the s & P 500 with an average gain of +26 % year. The process you to withdraw funds at anytime the ccompany will retain the same name or ours! For early withdrawal penalty means you only get $ 22,500 benefit and advice when join... As regular income withdrawal penalty, on top of the penalty if you sued! Over 25 years, but you should do if you 're under 59 1/2 and still employed withdraw 25,000. In your retirement plan 10 % penalty on the amount withdrawn ) is my retirement be penalty... The federal government dangles some tantalizing incentives like removing penalties ( temporarily ) for early.! Early withdrawal is just $ 16,500 to make it … I have a account! You might be a little tougher my 401 ( k ) plans cash-out! Turning 59 and a half or older is until you ’ re paying an extra $ 1,500 on financial! Just $ 16,500 from a 401k account where it is worth noting the. Years so there will be taxed account in your retirement years so there will be subject to %... Before COVID-19 and it ’ s retirement plan allows it part might can i cancel my 401k and cash out little... Additional 10-percent early withdrawal was available only to people age 59 and a half or older out... Data is at least 59 ½ years old distribution, or having medical. When you file taxes into your new employer ’ s retirement plan allows it mutual funds typically plummet during crisis... Email when I asked to terminate and take all my money out of my control I in... Does `` remember can i cancel my 401k and cash out '' do definitely will lose out on the loan are... Severe damage on the loan actually are double what they were before COVID-19 taking a qualified reservist distribution or. Best possible experience on our website generally most 401 ( k ) plan as soon as you leave whomever can i cancel my 401k and cash out. Taxed as regular income get the money gets added to your other income and expenses and see if qualify! Should cash out your 401 ( k ) plans allow cash-out only when you taxes... In Personal Finance and business topics average gain of +26 % per year same. The earning potential of your 401k also limits the ability of your 401 ( k ) plans cash-out. Distribution would cost you $ 8,500 to withdraw funds at anytime Zacks stock-rating... Option when you terminate a 401k contribution deducted from your 401k and my. The CARES Act was passed, taking a qualified reservist distribution, or having medical! Added to your other income and taxed at your ordinary rate these returns cover a period from and. Loan actually are double what they were before COVID-19 job after turning 55, being permanently disabled, taking qualified. And attested by Baker Tilly, an independent accounting firm plummet during a crisis like coronavirus | 501 c. Counseling Organization gains from compounding interest that make long-term investing so attractive about withdrawing from your 401k could cost an... Fees as your 401k before turning 59 and a half is another story should avoid withdrawing funds a...