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A better plan would be to roll over the 401K into an IRA account. You could then begin taking annual withdrawals as needed and according to IRS guidelines. There are several options depending upon your age so I suggest talking with a CPA or Financial Planner to discuss your specific situation and cash needs. A mistake in this process can cost you severely so it is worth talking to a professional. The added benefit to a Rollover IRA is the opportunity to diversify your investments through a brokerage account, since most 401K plans have limited investments available.

An additional resource is Ed Slott, CPA. He is considered the foremost expert on the topic and has several books that can help you with managing you retirement funds. Get educated before making a step. His website is attached.

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