After age 59 ½, the IRS allows penaltyfree withdrawals. The short answer is that yes, you can withdraw money from your 401(k) before age 59 ½.Depending on the type of plan you have, taxes may also be due, further decreasing the benefits. If you're considering taking an early withdrawal from your 401(k), here's what to know and some alternatives that may be better options. IRA withdrawals are considered early before you reach age 59½, unless you qualify for another exception to the tax. Retirement plan guides for all Department of Retirement System plans including rules and benefit information for Washington State DRS pension customers. Cashing out or taking a loan on your 401(k) are two viable options if you're in need of funds. Your complete retirement program. You can withdraw from the plan without paying an early withdrawal penalty. In observance of Martin Luther King Jr. Day, all ERB offices will follow the schedule below.