Your plan might allow a withdrawal and closing of the account only if you face the loss of your home or must pay unexpected medical or funeral expenses. With a previous employer, you can always close a 401 (k) plan by requesting a withdrawal of the entire account balance.
Can you close a 401(k) account with a former employer?
You'd be responsible for the taxes on that amount – as well as for the 10 percent penalty if you're not yet 59 1/2 – unless you could make up those funds from other sources. You can close a 401 (k) account with a former employer by rolling the funds over to an individual retirement account.
Can I Close my 401(k) if I move?
By requesting a withdrawal of the entire balance, you can close your account. But keep in mind that you'll still pay taxes on the entire withdrawal, at the regular income tax rate. If you move to a new employer, you can often roll over your 401 (k) to that employer's account. You can also roll a 401 (k) into an IRA.
