hi!

There are some matters i cannot fully grasp about my 401k.

Here is the situation:

I signed-up for it in November 2007 when i was married (and just before I knew I was getting divorced) and when my company assured us they would soon match our contribution to 100%. It did not happen, due to the state of the economy...
Since I signed for it I contributed for about 3600 $ (and lost about 18% of it).
I am a Permanent Resident but I have to go back to my home country because of a new job and I could certainly use the money to rebuild my life over there, since I don't know if I'll have the opportunity to live again in the US.

My yearly income is about $45,000 and I contributed for about 6% of my salary....

What should I expect in terms of penalties and taxes and what would be the process to close and withdraw the totality of my account? Is there such thing as a tax rebate for losses on a 401k, upon closure? And if yes (which I doubt), upon what terms?

I believe this might be a redundant question, but it would be great if someone could help me understand all the steps I need to go through.

Thanks in advance!

Loss on 401k is not deductible as it was never taxed before.
Withdrawal from 401k is income.
You will also pay 10% early withdrawal penalty. The 401K administrator will withhold about 20% taxes.

IF you REALLY need the money, then go ahead and withdraw it and pay the taxes.

If you CAN, however, it would be better to roll the mone over into a traditional IRA and LEAVE IT in the U.S. to grow for your eventual retirement. I know Charles Schwab will accept the rollover and allow you to manage it from your home country via the Internet.