At what age can you withdraw from a 401(k) without penalty?

Retirees can begin withdrawing their funds at the age of 55 as long as they meet certain criteria, explains Jim Blankenship for Forbes. They must participate in a 401(k) with their current employer and leave the company during or after the year they turn 55.

In addition, the plan must be a 401(k) or similar ERISA-qualified, employer-established defined contribution plan, according to Blankenship. This does not include IRAs or 401(k) funds that roll over into an IRA. Similarly, if someone retires at the age of 54 but waits a year to begin receiving disbursements, the disbursement is still subject to a 10 percent fee.