By cashing out, you not only get taxed and penalized, but you also lose the earnings that money could have generated. You won't even get all of your money: FedEx is required to withhold 20 percent for the IRS. If you don't put the money in a qualified retirement account within 60 days, it's taxed as ordinary income. Add on a state income tax, if one applies to you. And if you are under age 59½, you'll incur a 10 percent early withdraw penalty to boot. Without storing it away until you are nearly 60, you basically end up with half or less than half of what you currently have in there.