u/CriticalTrip2243

I have a sum invested in a Vanguard 401(k) and was recently severanced from my job at age 58. If I convert the 401(k) to a Cash Plus Account to guarantee the 3.35% APR interest, would that involve selling all my 401(k) investments to convert to cash that would fund the Cash Plus Account? Would that trigger a 20% tax penalty? I avoid the additional 10% penalty because I qualify for the Rule of 55.