In 2006 or so the “experts” were saying that people like my mother were fools for closing out their 401K accounts and taking the tax hit.
She did take a hit on the taxes but she also paid off her house and didn’t lose huge chunks of her money in following years.
It is always better for a retired person to be totally debt free if at all possible.
Sucks that she lost a lot of money, but at least she is now insulated from the uncertainty.