You can start to take qualified distributions from your solo 401k when you reach the age of 59½.

Early withdrawals before the age of 59½ are subject to a 10% early distribution penalty, plus income taxes on the amount withdrawn.

Qualified withdrawals after the age of 59½ have no 10% penalty, but income taxes are applied if withdrawing from pre-tax accounts.

  • Withdrawals from your pre-tax solo 401k will be taxed as regular income.

  • Withdrawals from your post-tax Roth solo 401k will be completely tax-free.

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