I'm still a student (2 more semesters), but recently completed an internship with GoodCompany that provided me a 401(k) matching plan. While I have about $1200 in it, I'm only vested in my contributions - 50% of the funds (I would need 3 years of employment to fully vest). While not impossible, it is unlikely I would return to work for GoodCompany in the future (far from family, mediocre pay).
Unfortunately, the 401(k) is losing money due to quarterly fees (fees are greater than earnings, taken from my 50%), so I want to pull my money out and into some private retirement fund. My parents say I should just pull the money out as cash, since "[I'm] still a student and shouldn't focus on retirement yet". Touching any of it will cause me to forfeit my un-vested amount, as will leaving it untouched for the next 5 years.
Is there any reasons to leave the money in the 401(k) (or have a defunct 401(k) in general) other than the possibility of the company's $600 in the future (eg. tax break)? Is there any penalty to touching 401k's?
If it makes a difference, the 401(k) is at Fidelity, and I already have a small taxable investment account with Betterment, and I want to move the funds to a Betterment IRA.