I had to leave my job at 58. In order to survive, I took my 401 in cash, not very much.

I understand thet the feds take 20% off the top, but does the state take a bit also. I live in Georgia.

What the feds took was an estimated federal income tax, if this was enough, fine, but at the end of the year , you delare this and have to see if additional taxes may be due also, The 20 percent may be enough.

But yes, Georgia has state taxes and you will have to pay state taxes on this money also.

However, the plan does not take witholding for the state so you will need to account for it.