There are age threshholds that dictate whether you pay a penalty on 401 (k) plan withdrawls or not. As an example, if you qualify, you could roll your 401 (k) into an IRA and take payouts under Section 72T of the IRS code. That will mean some planning as you might be spending your retirement nest egg.
But, missing your age, a "how to withdraw" solution isn't a good idea to post here.
If you are younger than 59 1/2 years old, there will be a penalty when you withdraw cash from the 401k, on top of your income taxes.
You can leave the money as is and let it grow over the years until you are ready to retire. However, most people often choose to roll the money over into another retirement plan, which would be penalty-free and tax-free. You can look into setting up an IRA account and roll the money over. With the IRA options, you can shop around for a good plan provider that offers better investment options and/or lower costs and fees.
Too bad your job is ending.....well, maybe it is not such a bad thing. For one, you can ROLL OVER your 401(k) into a self-directed IRA. Now, you can have 100% complete control over your investments, fees, expenses, risk, etc. There is no penalty in doing this, as long as you roll it over.
If you cash it out, you're going to be dinged with taxes and the early 10% surrender penalty.
reach out to a Wallet hub advisor, they should be able to help you do this at no cost.
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