Distribution options for a 401(k) include rolling over the savings into an individual retirement account, leaving the savings in the former employer's retirement plan, moving the savings into a new employer's retirement plan or withdrawing as cash, states Wells Fargo. These are options to consider when retiring or changing jobs.
The distribution option choice depends on the scenario of a person, according to Smart401k. Distribution scenarios include leaving an employer, leaving an employer with an outstanding loan, minimum distributions and nonpenalized distributions withdrawn after age 59 1/2. Employees need to check their plan documents to see the kind of distributions their plans accept.