"As of 2025, the average 401(k) balance for workers in their 50s is about $490,000. So, a 54-year-old with $4 million remains far above the national average-roughly eight times higher. And you're also in a great position to retire on the spot. Even though you'll need to stretch your nest egg further than someone retiring in their 60s, a $4 million balance gives you the leeway to do that."
"If you take a 401(k) distribution before age 59 1/2, you risk a 10% penalty. And even with $4 million to your name, that penalty is an expense you probably don't want to bear. The good news, though, is that you may not have to sit tight and avoid touching your 401(k) until age 59 1/2. You may be able to get your money out penalty-free in 2025."
"Tapping a 401(k) before age 59 1/2 typically results in an early withdrawal penalty. The rule of 55 could give you earlier access to 401(k) funds, but it won't work for everyone. It's best to have retirement savings in multiple accounts, including at least one that isn't restricted. Also: Take this quiz to see if you're on track to retire (Sponsored)"
As of 2025, the average 401(k) balance for workers in their 50s is about $490,000, making a $4 million balance roughly eight times higher. A $4 million nest egg provides flexibility to retire earlier, though funds may need to be stretched compared with later retirement. Withdrawals from a 401(k) before age 59½ typically trigger a 10% early withdrawal penalty. The rule of 55 can allow penalty-free 401(k) withdrawals if employment ends in the calendar year of turning 55, but it does not apply to everyone. Maintaining multiple retirement accounts, including at least one unrestricted account, is advisable.
Read at 24/7 Wall St.
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