What are my options to have less of a penalty or taxes to withdraw on a 401k ?

[goofyrider4]

I'm unemployed and waiting to see if I get benefits. I do have 401k and don't what my options or to cash it out or roll it over. Trying to use to live on with the fewest penalities  and taxes possible.

[TomD8 · Accepted solution]

This web reference explains your options very clearly:  http://finance.zacks.com/close-out-401k-account-9392.html

[SweetieJean]

Any distribution is likely going to be taxable, so consider rolling it over to an Traditional IRA.   You can then draw down on the IRA as needed.

There are some10% penalty exceptions. For example, there is no penalty if you were age 55+ at the time you left that employment. See others here:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

[fanfare]

you can't avoid penalties and tax on early 401k withdrawal, so take out as little as possible to let you get by.