There are some penalties if you withdraw money from your retirement savings plans before you reach the eligibility criteria. Withdrawls taken from most of the employer sponsored retirement savings plans taken before age 59 1/2. Ofcourse there are some exceptions like hardship withdrawls and loans from 401(k) plans, that are fully repaid.
It would be a common question for people who are first time contributors to 401k and for people who are already contributing to their 401k retirement plan. withdrawing money from a 401k during the early stages of contribution is not wise decision, but there would be some circumastances you would need money desperately and need [...]
The following table shows the 401(K) contribution limits.
401k Contribution Limits
Year
AGE 49 & BELOW
AGE 50 & ABOVE
2005
$14,000
$18,000
2006
$15,000
$20,000
2007
$15,500
$20,500
2008
$15,500
$20,500
2009
Â
Indexed to inflation
2010
Â
Indexed to inflation