Only if you're 59 1/2 or older. Depending on your 401(k) plan's rules, you can take a loan out for which you'd have to pay interest and have to repay in a certain time frame, or you can take a hardship withdrawal, which will be taxed at your regular income tax rate plus a 10% penalty rate. You should check out your plan's documentation to see what your options are, and you can read more about it here: http://www.filife.com/stories/cashing-out

Wednees1,
Unfortunately, as Erin and Kelly have pointed out, there is no way for you to get funds out of your 401(k) plan without income taxes and penalties, simply as a result of losing your job.

Withdrawals can be made penalty-free if you are over the age of 59 1/2 (or technically, over the age of 55 if you left the job in the year you turned 55 or a later year), or because you are disabled. But a layoff alone does not allow you to avoid the penalty.

It is worth noting that if your income is very low, then the actual income tax liability from your withdrawal will be low, but some level of income taxes will likely still apply, as will the 10% early withdrawal penalty. Consequently, your 401(k) is generally one of the last accounts you want to tap if you need funds, because of these undesirable tax consequences.

I hope that helps a little! Best wishes in these difficult economic times!

If you're just simply making a withdrawal - and not a loan as Erin mentioned - you will be subject to tax at your regular rate plus, in most cases, a 10% penalty. If you qualify for a 401k hardship withdrawal, the penalty will still apply. There are some exceptions but those don't seem to apply here.