how to cash out 401k after leaving job

[StHaley]

To take money from a 401(k) after leaving a job, contact the plan administrator to request a cash distribution, but be aware that this usually incurs an immediate 10% early withdrawal penalty plus income tax if you are under 59½. To avoid these immediate taxes and penalties, the funds can be rolled over into an IRA or a new employer's 401(k), thus maintaining their tax-advantaged status and continued growth for retirement purposes.