A 401k fund is a "Tax Deferred" fund that you have in the business world instead of pensions. As a rule you have 3 choices with the 401k, you can take it as a payout[1], you can roll it into a Traditional IRA (T-IRA)[2] or you can convert it into another instrument like a Roth IRA (R-IRA) or annuity[3].
Option 1 is your worst choice unless you have a STUPENDOUS SURE-FIRE IMMEDIATE use for your money. This is because you get your money AFTER a 20% haircut of your funds going to the IRS and then face the tax consequences of the funds upon your tax return.
Option 2 allows you to maintain the tax deferred status but you need to set up a "roll-over IRA" with a bank, credit union or investment firm. The money never touches your hands as it is directly deposited to that firm. This is ESSENTIAL in order to avoid that 20% IRS haircut. A T-IRA remains tax-sheltered until you start to withdraw money. You have to be 59.5 years old to withdraw without 10% penalty [special circumstances can mitigate]. The IRA can be self-managed even though it HAS TO BE A CUSTODIAL ACCOUNT but it also can be in a mutual fund etc where it is managed for the client. A 'feature' of a T-IRA is that when the holder gets to 70.5, there is a MINIMUM withdrawal (and tax burden) required EVERY YEAR.
Option 3 leads directly to getting personal financial advice because there are so many implications involved. A R-IRA has post tax dollars in it so if you convert a 401k into a Roth IRA, you pay all of the tax NOW. The good points are that under current tax law, it grows tax-free and all contributions can come out tax free while all earnings can also come out tax free after 5 years and after the owner is 59.5 in age. The annuity option is so variable that I won't say anything other than it is possible.
Hope that this free advice helps.
It did help,and I thank you and everyone for your information.
I have much to think about between now and the end of February.