If you decide to take out a withdraw from your 401k then you should consider all of the pros and cons of taking money out, this is especially true if you want to take out money at an early age.
If you are over the age of 59 ½ all money that you take out is penalty fee, but you still need to pay taxes on it. It is important to note that you do not have to start manually taking money out from your account until you turn 70 ½.
If you have not reached retirement age then a cash out 401k option may be something you want to avoid. Any money that you take out of your account will have a 10% penalty attached to it. So if you take out $20,000 $2,000 of it will go directly to paying off this fee. This does also not include taxes, you also have to pay taxes on any money that you withdraw. All of these fees can add up pretty quicky meaning you will have to take out even more money to take care of your bills.
In addition to that this money could have had the potential to grow over the years. So if you can avoid taking money out of your account early it is probably in your best interest to do so.
If you really need to get money right now then you may want to look at taking out a loan from your 401k. The rules for 401k loans allows you to borrow money at a low interest rate while not harming your account. All the money that you do borrow would eventually be put back into your account when you pay the loan back so it would have a very small affect on your account in general. That could be a much smarter way to get money out now, if you have some income coming in and just need some money now.
Whatever you decide to do just remember that any money you take out now will stop working for you. Consider all of the consequences and rewards before making your final decision.