Yes.
401Ks = bad because you have to know the rules. IRAs don't count in any state so you don't have to do any research at all. Therefore, trustee-to-trustee transfer 401K to IRA, and then withdraw from the IRA. Problem solved. You reference "income." It's still income for income tax purposes, but it is not a "pension" that requires reporting or risk of offset to your UI benefits.

