when do you need to start drawing money out of 401k?

Answer 1

[edit] Required minimum distributions
Account owners must begin making distributions from their accounts at least in the year after the year they turn 70 and one half. The amounts are based on life expectancy according to the relevant factors from the appropriate IRS tables. The only exception to minimum distribution are for people still working once they reach that age, and the exception only applies to the current plan they are participating in. Required minimum distributions apply to both pre-tax and after-tax Roth contributions. Only a Roth IRA is not subject to minimum distribution rules. Other than the exception for continuing to work after age 70 and a half differs from the rules for IRA minimum distributions. The same penalty applies to the failure to make the minimum distribution. The penalty is 50% of the amount that should have been distributed, one of the most severe penalties the IRS applies.

Answer 2

This all depends. Each retirement plan has different options, but each must follow IRS and DOL regulations. If you do not have a copy of the plan SPD (summary plan description) ask your employer or former employer for a copy. They must provide it. When you can and when you must draw money of of the 401(k) depends on several factors. Account balance and age and employment status and distribution options from the plan. There are retirement plan provisions that apply to every plan regardless of the individual plan provisions. At age 70.5, if you are an owner or if you are no longer employed, you must begin taking required minimum distributions (RMDs). If you are no longer employed and your account balance is greater than 5,000, your employer cannot force you to take a distribution. If you are employed and under age 59.5, the distribution options from the plan are limited to certain situations and plans are not required to offer in service distribution options. The plan may also limit distributions from the plan even after employment termination until a specified age or time, with limits.

Answer 3

Over age 59 1/2 if your current income is not sufficient.