To withdraw housing-related retirement funds like a 401(k) or IRA after resigning, follow these steps: 1) Confirm your employer’s plan rules and your age ( withdrawals before 59½ may incur penalties unless hardship or exceptions apply). 2) Submit a formal withdrawal request to your plan administrator with proper documentation. 3) For IRAs, meet the 60-day rollover period if not rolling into another retirement account. 4) Pay applicable taxes and penalties (10% for early withdrawals under 59½). 5) Consult a tax advisor to optimize tax implications.

The U.S. retirement system prioritizes structured withdrawals to balance financial flexibility and compliance. For instance, 401(k) withdrawals before 59½ typically incur a 10% IRS penalty, deterring early access unless exceptions like medical expenses (up to $10,000 tax-free under SECURE 2.0) or first-time home purchases ($35,000 limit) apply. Data from the Federal Reserve’s 2022 Survey of Consumer Finances shows 45% of workers under 55 face penalties for early withdrawals, highlighting the need for age-conscious planning. Additionally, the average 401(k) balance at retirement is $300,000, per Vanguard, emphasizing long-term savings over short-term gains. Age-based rules (e.g., penalty-free withdrawals for those 55+) aim to align retirement readiness with life expectancy trends, as the average retirement age has risen to 63 since 2020 (U.S. Bureau of Labor Statistics). These policies balance economic equity with fiscal responsibility, ensuring savers retain funds for decades while deterring misuse.