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Asked 9/10/2009
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I'm 60 years old and have two separat 401k accounts. One from my current employer and one from a previous employer. Can I withdraw money from the old 401k while contributing to my current 401k. Have two 401K's. One from a previous employer. Can I withdraw money from the old employers while contributing to the current one? I'm 60 years old. |
Answer 1/2 - Submitted 10/28/2009
Yes. Withdraws from a retirement plan can be made any time after age 59 1/2, so you can take withdraws from your old plan. Note that the money you take out of your old plan will be taxed as ordinary income (unless it is a ROTH 401k).
Also, this does not affect your current plan that you are still contributing to, so you can continue to make contributions to your current plan.
Answer 2/2 - Submitted 9/2/2010
Also you may know that when you turn 70 1/2, you will have to take minimum distributions. These will be determined by your age and the overall combined balances of your retirement accounts. The distributions may come from either account or both, as long as the minimum amount is met.
Since you are older than 59 1/2, you will be taxed on your withdrawals but there is not an additional 10% penalty.
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