I recently retired from teaching at age 55. I have a 401K with about $14,000 in it that I want to use for closing costs to refinance my home mortgage. Can I withdraw my 401K and use it without penalty?

If you were "separated fom service" (meaning you left your job) in the calendar year in which you attain age 55 or older then you can take withdrawals from your 401(k) plan without the 10% early withdrawal penalty. This exception to the penalty applies to distributions from a 401(k), not an IRA, so do not roll your 401(k) to an IRA. Also you will have to pay regular federal income tax and state/local tax (if appropriate for where you live).