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what is the tax rate on 401K withdrawal after age 60 hello there today weamp;#39;re going to delve into a docHub topic for everyone planning for their Golden Years the tax rate on 401K withdrawals after age 60 itamp;#39;s essential to understand how these taxes work to prepare effectively for your retirement and maximize your hard-earned savings what is a 401k first letamp;#39;s briefly talk about a 401k a 401k is an employer sponsored retirement plan that allows you to save a portion of your pre-tax paycheck into a retirement account the amount saved is invested and the returns accumulate tax-free until retirement a key benefit of this plan is the tax deferred growth when can I withdraw from my 401k the IRS permits you to start making withdrawals from your 401k starting at age 59.5 without incurring a 10% early withdrawal penalty however these distributions are not taxfree each withdrawal you make is considered taxable income so you will be subject to the standard income tax b