OK - we pulled out $ knowing we were going to pay, but we're trying to find a way around paying BIG time. We pulled out 44K early to put down on an investment condo in FL. We aren't anywhere near 59 1/2. We'd like to see 1) if there is a way to around paying the 10% penalty plus the exorbitant taxes or 2) how we address paying the huge amount to the IRS in installments.
Thanks for any advise you have.

Sorry, but there is no way to avoid the 10% early withdrawal penalty, unless the distribution is to cover medical expenses that are greater than 7.5% of your income. And there's no way to avoid paying the regular income tax on the distribution. There should already have been 20% withholding on the distribution.

Cannot avoid paying the penalty but look at it this way: if your condo investment yield a return more than the penalty then just treat the penalty of cost of your capital.