After age 59 ½, the IRS allows penaltyfree withdrawals. Line B7 - Early Withdrawal of Arizona,.Unforeseeable emergency withdrawals from the Maricopa County. Deferred Compensation Plan must meet the requirements of Section 457 of the Internal Revenue Code. • Within three years of retirement, ASRS members can register to attend the Route 3: Destination in Sight group meeting or online. The short answer is that yes, you can withdraw money from your 401(k) before age 59 ½. Loans are not permitted from IRAs or from IRAbased plans such as SEPs, SARSEPs and SIMPLE IRA plans. Loans are only possible from qualified plans. You may withdraw your funds in cash and pay all taxes and penalties, or you may rollover your funds to another qualified retirement program. Once you reach age 59.5, you may withdraw money from your 401(k) penaltyfree.