FoolishYvonne: "2) My husband really wants to retire at 55, which means he couldn't access the 401K for almost 5 years anyway and we'll need something more than a pension in the meantime."

You seem to be ignoring SEPPs (72(t)); the 401-k money can be accessed before 59 without penalty.

Also, if the original poster's husband retires from the employer where his 401(k) is at or after age 55, he can access that 401(k) without penalty, and without resorting to SEPPs, as well.

-Chuck