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Asked 8/5/2008

Can 401k funds generate monthly income

Can interest/dividends from a 401k plan be taken as income,no principal amount of the funds would be taken.As an example:
300K 401k account @ 1% monthly would be $3000 per month.Is it possible to take the $3000 as monthly income and pay ordinary income taxes on that income? Would that trigger a penalty situation?

 
 
 
 
 
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