Can you close out your 401k while still employed?

Can you close out your 401k while still employed? 6 Ways to Claim Your 401k Early and Penalty Free - Good Financial ... Feb 21, 2019 Hi Sonja – If and how much you will be able to withdraw from the 401k while still employed will be up to your employer. What ever you do withdraw will be subject to regular income tax, as well as the 10% early withdrawal penalty if you are under age 59.5.