So, I need to take out some money from my 401k and my work said since I'm not working right now I will have to take out everything, remove the amount I want, and put the rest in a rollover account. I need to keep this money accessible for an occasional withdrawal when needed (1 or 2 times a year). What kind of account would be best for this?
Taking it out of your 401k is one thing...do that and roll it into an IRA with fidelity/schwab/vanguard whoever.
Once you do that you can withdraw whatever you need for your yearly expenses but will have to pay taxes on that. I would keep 1-3 year of expected expenses in a Money market/bond/whatever account and leave the remainder in an index fund.
Step 1 - Roll your 401k into an IRA
Step 2 - Figure out how much you need for the next year and withdraw that and pay the taxes
Step 3 - Rough estimate on how much you might need in the next 1-3 years and put that in a MM account in your IRA where it can't really go down.
Step 4 - Leave the rest invested in an index fund tracking the stock market and once a year withdraw 1 year worth of funds and transfer it to your MM account to replenish the funds you spent in the last year.
(I am not a financial advisor and just a dork who loves kstate sports and finances and bird hunting)