401k fees upon withdrawal?

Question

At age 59 1/2 would there be fees and charges on money taken out of your 401k? What if you wanted to roll it all over to a Fidelity fund?

Answer 1

At age 59 1/2 you would have to pay only income taxes, at your current rate, for any money withdrawn from a 401k. Yes, you can roll the 401k money into any mutual fund IRA rollover account that you may choose. There is no charge to do the rollover.
One benefit of doing a rollover is that you have unlimited investment opportunities. With a 401k you can only pick from investments in the program.
When I turned 60, I did a rollover and set up for periodic withdrawals at roughly 5% of my portfolio. The rate of growth is about 10% so I am taking half the profits, the portfolio continues to grow, and my effective tax rate has been under 10%.

Answer 2

I rolled my 401K money into an IRA when I left my job. I wasn't even close to retirement age. I just wanted more than the 401K had to offer. We only had about 10 investments to choose from on the 401K. I had hundreds to choose from on the IRA. Just make sure you do a direct rollover so the money is never actually in your hands.

There was no charge to roll it over.

If you take the money out at age 591/2, you'll owe the taxes.