I quit my job and need money, can I cash out of my 401k?

Answer by  technogeek (6640)

You can draw cash from it, but if you do not replace the money before the specified time that the bank instructs you, you will be taxed on the money.

Answer by  happytimes63 (865)

Yes you can cash your 401K. Problem is depending on how your plan is set up, you will probably lose any money the company has matched. There are also fees involved in cashing in early. The worst problem is you will be taxed heavily for early withdrawl that has to be paid right away.

Answer by  Roland27 (16334)

It's not advisable. Go out and try to get a new job before making any big decisions like this. Most 401k's can be cashed out but it's not really worth it in the end. You have to pay a penalty and taxes which often times is more than the amount that you get in cash.

Answer by  tamarawilhite (17883)

You can cash out your 401K. However, you will owe income taxes as well as a 10% penalty on any amount you cash out.