This is all in my 401k. You can allocate your 401k funds into different funds. There are funds offered (equity funds, target retirement date funds) as well as a fully self regulated fund. Which is what i was able to transfer half my balance into. So it was just transferred into a different fund within my 401k. I never withdrew from my 401k. And will never until I retire. This is staying in there.
Aka no early withdrawal penalty, and none of this will be taxed until I retire and pay income tax from the withdrawals.
Granted, I have a personal account as well, which Uncle Sam will be seeing his share for the year. This is strictly my 401k. Not personal money.
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