A fellow employee was told by company's 401K company (fidelity)

That he could not cash out his 401k period. Unless he had a hardship under their

Under their guidelines , can they do that? I want to cash mine out, totally.

I understand the taxes & penalties.

Can they refuse me?

Tim

Yes they can refuse you, if your plan does not allow withdrawals by active employees (except under the hardship rules as specified by the IRS).