Is there an age when you must withdraw funds from your 401K?

Yes, you must begin withdrawing funds from your 401(k) by April 1 of the year following the year you turn 73, due to the Required Minimum Distribution (RMD) rules established by the IRS. If you fail to take the required distributions, you may face severe tax penalties. However, if you are still working and do not own 5% or more of the company, you may be able to delay withdrawals until you retire.