re: Defined Benefit Retirement Plan Termination & the distribution of assets

1. It's your decision to move the assets to either your 401k plan (less options, less expensive), or an IRA with whoever you choose (more options, more expensive.

2. You can choose to use the $20k for personal use, however just as others have mentioned since you are under 59.5 the 20k will be counted as an income distribution plus 10% penalty. It could potentially throw you in a new tax bracket. (consult your tax professional before choosing if you decide to do this)

3. If you move it to a 401k or IRA its a tax free roll over, your only deferring the taxes till you eventually are forced to make your RMD withdrawals at 70.5 at the latest. If you tax any distribution out of a qualified plan before 59.5 then see (2).

4. Do you own research, ask friends/family. If you truly feel like you can handle your own life savings and your future retirement, then go with vanguard. If you have the slightest doubt in what your doing, then consult a professional.