An IRA is a private arrangement that you set up with a bank or broker. If this is an account from a job, it is likely a 401(k) or 403B, or some other type of workplace plan.
When you terminate service with that employer, you have the option of rolling over the funds into a private IRA or into the workplace plan of your new employer. Rollovers are tax-free. If this is a designated Roth 401(k) account, you would have to roll it over into a Roth IRA or a designated Roth account at the new employer.
If you want to cash out, you can withdraw the original contributions tax free, and you will pay income tax and a 10% penalty for early withdrawal on any earnings.
