You did not provide enough information.
In general, do not cash out your 401 until you can do so without penalty.
This money is for the future, not the here and now.
You mean there are benefits to being over 59 1/2?
This advice would heavily depend on whether you believe there is actually a future for the dollar.
I see evidence starting to mount that the govt is trying to murder the dollar. Upwards of 2 trillion dollars getting printed. Stories in the wsj that the govt is lying about our debt that's actually on the order of 200 to 600 trillion dollars that's IMPOSSIBLE to repay. Stories about govt confiscating private retirement accts.
They WILL destroy your savings so your options are
1. Let them make it worthless.
2. Let them confiscate it.
3. Cash out, pay your fine and have at whatever is left in your hot little hands do with what YOU choose.
I'm choosing 3. Just trying to work up the gumption to have the argument with my broker guy.
But the here and now is being threatened by the ChiComs. The 401k will be next to worthless when the dollar loses 80-90% of its value. Better to cash it out, take what you can and convert it to gold until the dollar rebounds or is replaced with another currency. Iif that is something one can afford to do and the new tangible assets can be left alone and untouched. Then it is still money for the future.