I have an insurance agent trying to tell me that at age 70 1/2 I will owe taxes on the 401K assets I have, whether or not I have distributed them.

Having been in the industry many years and pretty familiar with 72t, I am disputing this with him. I maintain you pay taxes as you distribute the funds (paying penalties if you don't take your MRD after 701/2).

Any idea where he got this idea? Is any portion of it correct?

When was the last time you relied on an insurance agent for tax advice? See IRS Pub 560 P 16 for distribution requirements for qual plans. The agent was probably trying to sell an annuity ( or misinterpreted the MRD rules).

My neighbor uses his insurange agent for tax advice. That is how he defaulted on half of his mortgage.