At 59 1/2 you may start taking distribution which are taxable as ordinary income. The difference is that you have to pay a penalty on unqualified distributions before 59 1/2. After 59 1/2 there is no such thing as unqualified distribution so no penalty. You may want to talk to someone in your community who is reputable and can recommend an investment vehicle that can help you make the most out of your 401K.
