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...
The discussion was about the government looking at seizing 401k’s and 403b’s and some here said they were tempted to just take out themselves vs. letting government take it all.
Yes, it would be crazy, but, I’d take the money and do with it what I wanted vs. the government telling me how much of my money they will give me each month after they stole it.