Needs based = eligibility is based on need.

Unemployment is NOT needs based. You can qualify for unemployment if you won the lottery the week before, and you can fail to qualify if your next move is a relocation to a cardboard box at the corner of Third and Maple. It doesn't matter if you need the UI or not; you get it if you need the qualifications and you don't get it if you don't

If you roll over your 401(k) into another qualified plan of any kind, it will not affect your unemployment. Period. i don't know how to make it any more clear than that.

If you cash it out, you will pay a penalty AND you will pay taxes at the end of the year, unless you are at least 59 1/2.