Benefit plans are usually a program given by employer that pays based on factor x,y,z of length of time worked, salary history, level of accomplishment in the company. The benefits usually are given out once a month but can just given in a giant lump sum. I am assuming like the lottery if you take the giant lump sum, a deduction will be given versus the once a month option. If you pass away, usually the surviving spouse is given those benefits instead.

Defined contribution plans are plans that employees can invest money into a 401k before taxes are taken out of paycheck/salary. The employer sometimes will even match the dollar/percentage amount that the employee will put into the plan. These plans do not have to be used and are all volunteers, and all the risk is taken by the employee if the 401k crashes.

If you can transfer the 401k to another different employer 401k I think you can avoid the 10% penalty.

If the cares act had been applied than I would try to combine them to avoid penalty

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