I have a 401k account at my former employer. If I needed to get access to the cash, what are my options?
Answer: As a former employee, you can request the distribution of your 401k assets at any time. Simply contact your former employer and ask for the forms necessary to make a lump-sum withdrawal. Your former employer will be required to withhold and remit 20% of the amount to the IRS as a "down payment" on income taxes. Further, if you are not at least age 59½, you may owe a 10% early withdrawal penalty.
The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.