Retirement tax questions

Why did she take it out?  If she stopped working there she can avoid the 10% Early Withdrawal Penalty if she was 55 or older instead of needing to be 59 1/2.

 

If she had to take it out but didn't need the money (since she put it in a Savings Acct) she could roll it over to a IRA as others have said.  Is the savings account in a IRA?