So here is the deal. I am debt free: house, car, everything and want to start ERE by selling my Current house and buying 2 foreclosures/shortsales in cash. One to live in, one to rent. So today I went to cash out my 401k. Yes I know I will have to pay taxes and take a 10% penalty. We all obviously plan on retiring earlier than 65 and I dont want to do a 75b so the earlier I withdraw it the less of a 10% hit I take and my 401k plan sucks. But little did I know how bad. The company I work for told me I CAN NOT close and withdraw my 401k with them as long as I am an active employee with them, I have to quit, retire, or die. I can take out a hardship loan where I will then pay back "myself" with interest back to the 401k I laugh at the myself comment because if it was my own money I could touch it. Basically I have 38k sitting in an account I cant touch, or 24k after the 10% and taxes. Thoughts? Anyone else been told they cant close their account?