The most common way is to take out a loan from the account. This is usually the easiest and fastest way to access your funds. Another option is to transfer the account to an IRA, and there are many Gold and Silver IRA Custodians who can help you with this process. The simplest and best way to use your 401 (k) plan without incurring a tax penalty is to use it for the purpose it was intended to provide retirement income. However, if you need money for a major expense, such as major medical treatment, a college education, or the purchase of a home, you may be entitled to a hardship distribution or a 401 (k) loan.
With a 401 (k), you can start making penalty-free withdrawals when you turn 59 and a half years old. If you need access to your funds before that date, you can make an early withdrawal, but an additional 10% tax penalty will apply, unless an exception applies. This type of penalty-free retirement is called hardship distribution and requires you to bear an immediate and heavy financial burden that you otherwise couldn't afford to pay. If the loan is not repaid according to the conditions set by the plan provider, the outstanding balance will be considered a distribution and will be subject to income taxes and a 10% early withdrawal penalty.