Yes, withdrawals are subject to income tax. However, based upon your present situation there would be very little, if any tax. If you withdraw before age 59 1/2 there would also normally be a 10% penalty, but in your case that would not apply as your withdrawals are due to the death of your husband, That's one of the technical issues that if you were to decide to rollover the funds to an IRA, it has to be done as a beneficiary of your husband, in effect as a "Deceased IRA", naming your husband to preserve the special rules that apply to you as a widow. That's a perfect example of why you need to run everything by your brother; if he's going to be the guy, then there can be no "I didn't want to bother him as he's so busy". I'm trying to frank with you here as I feel for your situation.
As an aside, generally Vanguard is an excellent Mutual Fund Company, in fact one of the leaders over an extended time period. However, you must look at the projections carefully & not "rely" on them. There are assumptions built into them that may or may not come to fruition. You (your brother) needs to evaluate & explain them to you so that you understand them & you will realize that these are projections only, not guarantees.
You can see that the Vanguard funds are all "index" funds, which means they follow various segments of the stock market and that's why you are seeing the swings in value. When you hear the news & they say "the market is down 300 points today, you can pretty much be certain that your investment is down too. Of course, it works the other way too. But, if the market "tanks" and drops a couple thousand points, that $220,000. value may be $175,000. and that projection of $1,650., may drop to 1,250. But what matters most to you is where is the market going to be in 15 +- years, so these type of swings are what is "normal" for the type of investment that are in the 401-k.
You need to get your brother on board. That's the bot***** *****ne. I can only do so much online. I can give you the direction you need, the things that you need to consider, etc., but this website is actually designed for each question to be responded to and perhaps 1 or 2 or 3 follow-up questions or comments to clarify something for you. Generally the whole process takes about 15-20 minutes on average. This exchange could easily be 6 or 8 separate questions. But as I said, I'm trying help out in light of your situation.