Age 59.5 is a milestone in one’s life because it’s the age when withdrawals of pre-tax Defined Contribution (DC) assets are no longer subject to the 10-percent Federal penalty tax. This rule applies to 401(k)/403(b) and IRA assets.
Note: Regardless of age, withdrawals of 457(b) assets are never subject to the 10-percent tax. 457(b) assets, however, may only be withdrawn upon severance of employment.
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