Age 59½: That’s the magic age when you can typically take penalty-free distributions from your retirement accounts. If you’re still working and have a 401(k), it’s also the age when you can possibly utilize an in-service withdrawal to increase your investment options and take advantage of additional planning opportunities.
Sure, 401(k)s are a great investment during your working years. You might get a company match, which is free money for you if you contribute a certain amount of your own funds. You’re also able to benefit from the power of compound interest through the massive market returns we’ve seen in the past. Plus, many 401(k)s are low-cost — making them an attractive way for individuals to save for retirement.
