The vested balance ($5700) is the amount you have. You can roll it over the your IRA or leave it with your plan (most of plan have a cash out limit of $5000), you do not have to pay a penalty of 10% and withhold 20%. The gain is allocated based on your vested precentage.

Thanks Charles,

What happens to my gain of $4000 then? Does that get tackled on top of the $4600? I'm 32 years old if that makes a difference.

That $4000 is not likely a gain.. the unvested amount is normally what the employer has contributed. You must work there a certain amount of time before the money is all yours. Some plans vest at 20% per year, some you vest 100% at five years, and before that not at all. I assume you did not contribute the entire amount.. probably 1/2... or less. The rest is company contribution, which if you are not entitled to, or vested in, is returned to the company.

Maybe you could leave it in the plan or roll it over. I would check if it vests if you leave it in the plan.