20 To 39 year Olds Have Highest 401(k) Cash-Out Rates

From Bloomberg, "Early Tap of 401(k) Replaces Homes as American Piggy Bank" by Richard Rubin and Margaret Collins:

Younger workers ages 20 to 39 have the highest cash-out rates, with about 40 percent taking money with them when they switch jobs, according to data from Fidelity, the largest administrator of 401(k) plans.

"The pervasive thinking is, 'Why bother rolling over $2,500? The taxes and penalties aren’t that daunting,'" said Michael Branham, a financial planner at Cornerstone Wealth Advisors in Edina, Minnesota. "What’s missing is the longer-term thinking in that decision-making process."