I spoke to my CPA this AM. I don't waste any time these days, LOL. He told me that I probably should see if AH would agree to letting me keep ALL the proceeds from the sale of the house. He was thinking of coming up with some ways to help me invest the money. We talked about the financial implications if I were to take the 401K distribution and even if I invested it wisely, I am nowhere near retirement age and would have penalties and taxes to pay once I start withdrawing. He said I'd have no tax implications from the house money and we can figure out an investment plan that would work for me.
Very nice to talk to him because he was neutral and just wants to make sure I can make the most of what I get.
My lawyer had suggested this route a few months ago, too, so I'm guessing it's pretty common.
Now, all I have to do is get AH on board and see if we can work through this like adults.