Question regarding 401k

[customerserviceguy]

2. Have him

contact the holder of his 401K account. Expect to have to provide a LOT of verifying information over the phone, they want to take maximum steps to avoid fraud.

With a 401K (or any tax deferred retirement account, one has to up take the amount withdrawn as taxable income in the year it was received. Also, there's a 10% premature withdrawal penalty, unless you have something from a list of very pressing needs (like medical bills).

Also consider that if he drains the account now, he may not have anything to fall back on when he does retire, and at age 41, the system is likely to cut way back on payments before he hits 62. I had nothing at age 52, but then I got a union job that paid good wages, and I was able to save up to 22% of my pay for over seven years. I'd tap those funds only as a last resort. I'd even consider filing bankruptcy after finding another job.