Hi, I am 31 years old, and my wife is 7 months pregnant. I have money in my 401k and I heard through one of your questions/answers that if you are unemployed, and paying insurance premiums, that you will not be taxed on this money? I have not received my unemployment check yet, and I am going to have to continue insurance coverage through Cobra for $647 a month. My wife doesn't make a lot of money so its kind of an emergency situation. Can you help answer this question? Will they penalize me, or will they take a massive amount or my money out of my 401k cash out check? I only have $3,450 in there total. Thank you