Harness Money

Yes, you can cash out your old 401(k) after you’ve left your employer.

You can ask your plan administrator for a cash withdrawal from your old 401(k), and they will close your account and mail you a check.

However, it is generally not recommended to cash out your 401(k) until you are at least 59 ½ years old. If you are under 59 ½ years old and cash out your 401(k), you will trigger a 10% penalty from the IRS, plus you’ll have to pay income taxes on the withdrawal.

Cashing out a 401(k) should be seen as a last resort. There are other options for an old 401(k) that are preferable to cashing out.

For example, you can roll over your old 401(k) into an IRA or into your new employer’s 401(k) plan.