Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.
There are several considerations here so a simple answer is not really possible. Please follow along with me and you will be able to see what applies to you and the options you have to pick from.
First, there is an age consideration. If you are under 59.5 years old you will be penalized by an extra tax of 10% of the amount withdrawn unless you satisfy one of the exceptions listed by the IRS:
There are several exceptions to the age 59½ rule. Even if you receive a distribution before you are age 59½, you may not have to pay the 10% additional tax if you are in one of the following situations.
You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income.
The distributions are not more than the cost of your medical insurance.
You are disabled.
You are the beneficiary of a deceased IRA owner.
You are receiving distributions in the form of an annuity.
The distributions are not more than your qualified higher education expenses.
You use the distributions to buy, build, or rebuild a first home.
The distribution is due to an IRS levy of the qualified plan.
The distribution is a qualified reservist distribution.
If you are over 59.5 years of age, the early distribution penalty tax will not apply to you. You will, however, need to address regular income taxes. There is something for you to consider before you take a distribution - the retirement plan may permit you to borrow against your account. If that is the case, and you are able to make the payments, you can avoid taxes on this completely. Regular tax rates vary depending on your income levels but most individuals are in the 15% tax bracket. Therefore you should plan on dealing with a regular income tax of approximately $1500 on a $10,000 withdrawal. Please also remember that there will be state tax as well. You should estimate this at 7% to be within reasonable tolerances and not have any major surprises at year end.