He can roll it into an IRA. Due to the modest amount he may not have enough for a fund company, but a bank or credit union may be able to help. He has 60 days to complete this.
If it was from a 401k or a SEP (non-ROTH) and he accepts the money, he will add the amount to his taxable income for the year (thus be taxed at his marginal rate) plus the federal government will charge him an additional 10% penalty. If the money came from a SIMPLE he could possibly pay taxes plus a 25% penalty.
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