For many individuals, simply understanding the 401k withdrawal rules & options can be enough to save them from making some expensive mistakes. A 401k withdrawal can be a lot different to a loan from your 401k, which comes with a specific set of rules and restrictions. Here, we’re going to focus on withdrawals and the four major types of withdrawal that most 401k owners can make. These include 401k hardship withdrawals, penalty-free withdrawals, minimum distributions, and 401k distributions in retirement.