HOW DO I CASH OUT MY 401K?
All 401(k) plans have a plan administrator that will have information on options for you. You're best bet is to contact the HR department at your company and they should be able to point you in the right direction.
There are several implications that I also want to briefly highlight however:
- Check the vesting schedule. If you're employer has provided any sort of match, you may be subject to forfeiture by cashing out before you are fully vested.
- Beware of tax implications. Withdrawal of a 401(k) balance before age 59 1/2 may be subject to a 10% penalty by the IRS, so you'll want to consult a tax advisor if this is your plan. Directly rolling the balance into an IRA may save you significant headaches.
- Consider your retirement situation. Leaving your 401(k) alone may still be your best bet, especially if it has low fees and good investment options.