The easy answer is at age 59 1/2. Most people who ask this question ask it because they don't want to pay a penalty to the IRS for early withdrawal of their 401k. What most people don't know is a small part of the internal revenue code (section 72t) that allows them to take money out of their 401k PRIOR to age 59 1/2.
Have you ever wondered how someone can begin taking a pension prior to age 59 1/2 without penalties? Well section 72t allows you to take money out of your 401k prior to 59 1/2 if you make the distributions look like a pension plan. Your next question is probably "how do I do that?"
It isn't very difficult to follow the rules set forth by section 72t. Basically your distributions must be similar in amount and frequency and you must continue taking them for a minimum of 5 years. Your 401k administrator can give you exact details and will help you conform to these rules.
Congratulations on saving well for retirement. If this conversation interests you then you must have been diligent in your putting money away and managing it.
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