There are restrictions placed on 401(k) plans regarding access to funds at 59 1/2 years of age if the person is not yet retired from the company that offers the plan, reports About.com. Therefore, Wal-Mart employees should consult with the company benefits administrator concerning 401(k) rollovers or cashing out.
Most 401(k) plans allow people who are retired at 59 1/2 years of age to withdraw money from the plan without having to pay a tax penalty, according to About.com. It is also possible to rollover a 401(k) to another plan at this age, if the plan provides that option, notes CBS News. Although rolling over a plan is possible, this may not be the best option for the long-term. If the 401(k) plan is administered by a large employer, the employer is often able to negotiate reduced fund management fees, which allows investors to keep more money. Rolling a 401(k) into an individual retirement account may require investors to withdraw a minimum amount of money from the account on a regular basis, which is taxable.
Cashing out a 401(k) plan entails filling out paperwork from the investment company administering the plan, and it may also require a signature from the employer's benefits manager, notes About.com. Individuals over 59 1/2 must pay income taxes on amounts withdrawn.