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Chapter 18. Cashing In or Out of Your 40... > IRS Publications That Are Yours for ... - Pg. 184

Cashing In or Out of Your 401(k) 184 · The IRS will make you jump through hoops by imposing rules on when you can get a hardship withdrawal. · The infamous 10 percent penalty, federal, and state taxes (where applicable) will be imposed on hardship withdrawals. · If you are separated from service (that is, you quit or got fired), the prudent thing to do is to roll your 401(k) into an IRA or transfer it into your new employer's 401(k) plan. · Divorces are tough enough, but when you add money to the formula, things can get truly messy. Plan wisely when splitting retirement assets. · There are ways to access your 401(k) plan without paying the infamous 10 percent penalty. · Be sure you've done the proper planning so your spouse and heirs are taken care of.