If you terminate employment with your company, you may take a termination distribution. This is a withdrawal of your funds from your 401(k) account that you can roll to an IRA (at Betterment or elsewhere), to another employer’s 401(k) plan, or take as a cash distribution.
Generally, participants who choose to take their termination distribution as a cash distribution are subject to a 20% Federal income tax withholding and any applicable State income tax withholding.
Please contact your plan administrator for more information about your employer’s process for administering termination distributions. Betterment is not a tax advisor. Consult a tax advisor about your specific situation.