Early withdrawal of 401K or IRA?
Greetings, I am needing to take a withdraw to assist me in paying for my health premium (COBRA) and the co-payments, deductibles, etc. associated with my medical expnses. I am currently receiving unemployment benefits, but it is certainly impossible to pay for all of my medical expenses with the few dollars received from these benefits. I have a small savings in 401k. My question is: should I take a withdrawal directly from my 401K or should I rollover the funds into an IRA first, and then take a withdrawal from there? Will the taxes and/or penalties differ? Are there any special tax circumstances I may qualify for? FYI-I have tried to sign up for an HSA, but my coverage doesn't qualify as a HDHP (High Deductible Health Plan). Please help!
Thanks!