You are over age 59 1/2 and so can withdraw finds from your 401(k) without an income tax penalty. Withdrawls are subject to regular income tax.

At 68 years old, you can certainly begin drawing out of your 401k account. In fact, it's probably a smart move. The IRS normally requires you to begin taking disbursements by age 70 and a half. As long as you're sure that you'll have enough left when you do retire (if you choose to), then there should be no problem.

Research safe withdrawal rates to figure out how much you should take. This based upon your own expectations, desires, and how long you expect to live. If you want some of the 401k money passed down to beneficiaries, then your withdrawal rate may be less. In your case, it will probably be less anyway, since you still have a job a primary income stream.

Note that all 401k withdrawals add to your income. This may result in kicking you into a higher tax bracket, if your salary or wage is decent. Try to find a good online tax calculator and run a few scenarios to see where you may end up. This can help you determine a good withdrawal rate for your 401k funds too. At this point, minimizing taxes is important, just to ensure that you don't end up giving large amounts of your 401k to Uncle Sam.

Yes you can withdraw your 401K, but you must remember your income tax when you file every year so make sure you find out how much penalty if you are planning on withdraw.

It doesn't matter what age, you can withdraw when you get ready.