<prompt> Human: I am 26 and am leaving my current job. At this job I have contributed about 8K into my 401K in one year. I can roll it over to my new employer, or I can cash it out and receive a check. I can also do any combination of both. I live on the close outskirts of a very expensive urban city. Because of high living expenses it has been difficult to save much money. Right now my savings account has maybe 1.5 months worth of living expenses in it. I would like to have a 3-4 month emergency fund as it is often referred to in this sub. What is the better decision? Cash out my 401K now and keep it 6K ish after taxes to help contribute to my savings, or roll it over to my new employer and keep contributing?I plan to continue to contribute at my new job regardless of what I do with the existing balance. Will cashing out and starting my 401K over be an ok thing to do at this point? Being 26 I feel like I have plenty of time and starting over now would be ok. I dont plan to retire until age 65 and have only been contributing to it for a year. TL;DR: I want to know if I should cash out my existing 401K balance in order to have a larger emergency fund.  <response>: Do not cash out your 401k. Roll it over to an IRA. You will lose taxes and a 10 penalty. 