Will The Unemployed Soon Be Able To Tap Retirement Accounts?

Not if a little-known provision buried deep within President Barack Obama's proposed 2016 budget becomes law. The provision would allow those that have received unemployment compensation for more than 26 weeks to get up to $50,000 per year from their IRAs and company-sponsored retirement plans.
You have indicated that you don't need the income, or at least most of the income, from your wife's trust. This means that your wife (who you indicated is the trustee) is, in a sense, the steward or custodian for the future benefit of your son. To the extent that you just feel this is true, you should think about investing more in line for how you'd invest for him. If you ask me this suggests that you are considering selling a large portion of your bond funds and reinvest in stocks or stock mutual funds. A good starting point would be a 60% to 75% allocation to stocks or stock mutual funds.
Reply: There will not be an inheritance tax, but it will be taxable to you as you take it from his 401k. That is because he received a tax deduction for his contributions to his business retirement plan. You'll be subject to Required Minimum Distributions (RMDs) based on either your life expectancy or the life expectancy of the oldest sibling, depending on the way the beneficiary designation was written. Above the RMD, you'll be able to take out as much as you wish but remember that you'll owe income taxes on all withdrawals.
But according to Kiplinger's Retirement Report, there are just two cases in which you should pick the traditional 401(k) over the Roth 401(k). If you presently fall in the 33 percent to 35 percent tax bracket and anticipate that you will fall into a lower class during retirement, stick using the traditional 401(k). You are getting a higher tax break now (33 cents on the dollar) than you'll during retirement (15 cents to 25 cents on the dollar).
Rolling your 401(k) into an IRA instead should give you significantly more control within the assets. That is as you can pretty much invest it how you see fit. After all, there are more than 8,300 mutual funds out there, while the typical 401(k) strategy has just seven investment options. Unless you feel strongly about having all your money in one single place, an excellent plan is to roll your old 401(k) into a self-directed IRA and then contribute as much as you can to the 401(k) at your job. Even if the brand new strategy is worse than your old one, you do not need to forsake the advantage of pretax contributions and the business match.
But that's not the only downside. Employers frequently stop your match while a loan is outstanding. And if you get laid off, fired or leave the job for every other motive, chances are that that loan is definitely going to be called in, and fast. What goes on if you can not repay the loan? You will owe income taxes plus a 10% early withdrawal fee. See Should I Borrow From My 401(k)? in the Debt Management section for a worksheet that can help you choose.