Not sure if folks know this rule about early withdrawal.
If you have a 401K, 403B, and you are eligible to retire from your employer and are not 59 1/2, you will not be penalized if you withdraw.
However, this law does not apply if you have IRA.
I am eligible to retire via my work(age plus years worked needs to equal a certain number), however, I am 56. I can retire and withdraw all of it and just owe the taxes, but no penalty. It’s all in 403B.
If one has any decent amount of money in the plan, it makes no sense to cash out. Let say you have several hundred thousand and live in California. Your probably going to have to pay at least 33% fed tax and at least 10% state tax. If it is an early withdrawal add another 10%. Goodby retirement money...