Hi, NN23,
You say that you need major dental work done ($6,000) and have money in your 401K that I would like to use. You want to know if you will be taxed/penalized.
First, yes, you will be taxed on the 401K money you withdraw if you are withdrawing pre-tax funds (this is the most common type of withdrawal).
Whether you will be penalized or not depends on a few things. First, you can avoid the 10% early withdrawal penalty if you are over 59.5. If you are younger than that, there are reasons you can get an exception to this penalty. Here's an article that discusses those reasons
The article includes a notation that you can avoid penalties on unreimbursed medical expenses in excess of 7.5% of adjusted gross income). So, unless those dental expenses meet that criteria, that may not help you. Please also take a look at the other reasons, you may find something in the article.
Another thing to consider is the possibility of taking a loan, instead of a distribution. Note, if you leave the company you will typically be required to repay the loan, and, if you cannot, it will become a taxable distribution at that time.
Cheer below with a thumbs up if this helps!
Best,
Karen
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