Cashing out 401k

hello, i recently left my job, and i had around $4000 on my 401k account and i also have a loan for $500 that has not being paid yet, will i be able to cash out my 401k after a month?

Have you read the Summary Plan Description (SPD)?

That is too plan specific to be answered on a general answer board like this.   You need to read the plan documents and speak to your former HR or the 401(k) record keeper.

But generally, yes, you will be able to cash out your account. Your current balance will be used to offset your loan amount, and that outstanding loan amount will be reported as a taxable distribution to you. (If you take cash, the whole thing will be taxable; if you roll it over, the remaining amount would not be taxable.) It is *possible* that the plan might make you wait longer to take a distribution, but very unlikely.

12 minutes ago, KEC79 said:

But generally, yes, you will be able to cash out your account. Your current balance will be used to offset your loan amount, and that outstanding loan amount will be reported as a taxable distribution to you. (If you take cash, the whole thing will be taxable; if you roll it over, the remaining amount would not be taxable.) It is *possible* that the plan might make you wait longer to take a distribution, but very unlikely.

Actually,their account balance will offset/reduced by the unpaid portion of their loan.