Your 401k withdrawal options are as follows if you are over the age of 59 ½ but under 70 ½:

-Take a lump sum distribution, in which case your 401k plan provider will write you a check for the value of your account less a 20% withholding tax mandated by the IRS. The 20% tax that is withheld will be counted against your income tax payable or will be counted towards any refund due for the tax year when you file your tax return.

-You can do nothing and leave it with your previous employer as long as the amount is greater than $5,000. Amounts less than $5,000 will usually be distributed to you regardless of you age. (check with your plan sponsor)

-Do 401k rollover into an IRA or a solo 401k (if you are planning to open your own one person business).

Your 401k withdrawal options are as follows if you are under 59 ½

-Take a lump sum distribution, in which case your 401k plan provider will write you a check for the value of your account less a 20% withholding tax mandated by the IRS, and a 10% withdrawal penalty. The 20% tax that is withheld, but NOT the 10% penalty, will be counted against your income tax payable or will be counted towards any refund due for the tax year when you file your tax return. Some 401k penalty free withdrawal exceptions are here.

-You can do nothing and leave it with your previous employer as long as the amount is greater than $5,000. Amounts less than $5,000 will usually be distributed to you, less a 20% withholding tax, regardless of you age. (Check with your plan sponsor)

-Do 401k rollover into an IRA or a solo 401k (if you are planning to open your own one person business)

Your 401k withdrawal options are as follows if you are 70 ½ or older

-Take a lump sum distribution, in which case your 401k plan provider will write you a check for the value of your account less a 20% withholding tax mandated by the IRS. The 20% tax that is withheld will be counted against your income tax payable or will be counted towards any refund due for the tax year when you file your tax return.

-Leave it with your employer 401k plan but start taking the required minimum distribution.

-You can do nothing and leave it with your previous employer as long as the amount is greater than $5,000. In this event, you will be taxed 50% of the required minimum distribution. Amounts less than $5,000 will usually be distributed to you regardless of you age. (check with your plan sponsor)

-Do 401k rollover into an IRA or a solo 401k (if you are planning to open your own one person business).  You still have to take the required minimum distribution even if you roll it over to an IRA.

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