I have a 401k loan and 35,000.00 still in the account. If I leave my employer can I cash out the balance in the account?

[NewGuy · Accepted solution]

You can cash out the balance in the account, but unless you are 59 1/2 years of age, you will have to pay a 10% early withdrawal penalty on top of ordinary income taxes.  If you do not pay back the loan, it will be recharacterized as a withdrawal and you will have to pay the penalty and taxes on that amount.  There are exceptions to paying the early withdrawal penalty listed on this IRS page:

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