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Due to the negative tax ramifications, cashing out your plan is rarely a reasonable option.
The rule of 4% has been proven to be reliable through a wide range of tumultuous markets including the great depression, World War II, and the high inflation in the 1970s. It can be a good place to start, to see how well positioned you are for retirement.
A Roth 401(k) may be a better option if you are currently in a low tax bracket and expect to be in a higher bracket in retirement.
The objective is to use the least tax efficient accounts first to allow your tax advantaged accounts time to grow and compound.
Evaluate your retirement income and assets to assess your ability to adequately support your goals.
Retirees spent more on travel, eating out, and other discretionary items at the beginning of retirement. As retirees age, discretionary expenses decrease, and health care costs increase.