My mother cashed hers out nbot because of a fear of government getting it but because she saw how fast it was eroding in the stock market.
The “experts” said the same thing they’re saying now. If she had listened, she might have a quarter of what she had when she cashed out.
I would not cash mine out to stay away from stock market, although it does appear weaker for the foreseeable future than historical.
Instead, I view the liberal mindset that anything in 401ks and IRas is the governement’s money as no taxes have been paid. They would like to seize a portion and issue “Social Security credits” to those who have 401ks or IRAs.
If you remove your money from them, they are that much further from goverment’s seizure.
Every 401(k) has a money market option. I think it's a requirement. So, all she had to do was transfer among funds in her account.
There was no need for her to close the account and withdraw the money, if that's what you mean by "cash out".
I understand the fear that the government is going to come after 401(k)/IRA funds. But, I think there's really no need to worry. The fastest way for the Democrats to lose their majority status would be to try to confiscate retirement assets.
If you think the health care debate was contentious, a fight over retirement assets would be incendiary.