But just how worried should people be by market fluctuations' And just how big a hit do 401(k)s take when markets fall' The Conversation turned to Western Governors University's Ronald Premuroso, an expert in this area, for answers. The employee is eligible at any age to contribute to a 401(k) plan and has the option to pay into these plans throughout their employment. Many employers match some or all of an employee's contributions, making the plan even more attractive. Someone with a 401(k) can withdraw funds from the plan early, and at any time. But the money amounts withdrawn will typically be deemed taxable income. In addition, those age 59 and a half and under will likely face a 10% penalty on the withdrawal, unless the employer's plan allows for hardship distributions, early withdrawals or loans from your plan account. All withdrawals starting at age 73, which tax professionals call 'RMDs,' are then taxable in retirement ' presumably at a lower tax rate than the employee was...
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