Younger employees and workers with smaller account balances are more likely to cash out their 401(k) plans, according to a study by Lincolnshire, Ill.-based Hewitt Associates.
Nearly half (46 percent) of workers took a cash distribution from their 401(k) plan when they left their jobs in 2008 -- a percentage that has remained virtually unchanged since 2005. And younger workers are more apt to cash out.
Six in ten (60 percent) employees in their 20s took a cash distribution, compared to just one-third (34 percent) of those in their 50s.
Read the entire study.