Hello @NMTall
Thank you for joining us today, we are so happy you are here!
Great question! When you (and or your spouse) were contributing to your 401k, it was contributed with pre-taxed dollars, so typically when you make the withdrawals, they are taxable.
As for the IRA, is it a Traditional or Roth? If it is a traditional, then you pay taxes on the distributions, if it is a Roth, then you your distributions are tax free.
You may be able to take a temporary loan on your accounts, but you will have to check on each Plan if that is an option. Here is alink for more information: https://www.investopedia.com/ask/answers/081815/can-i-take-my-401k-buy-house.asp
One way to soften the tax burden is to have taxes withheld from your distributions, and only withdrawal what you absolutely have to withdrawal. Try to use other sources that may be available, such as loans mentioned above. Do you have stocks that you might be able to sell? Stock gains, depending if it's long term or short term, may be taxed at lower rate.
I hope this is helpful, and please let me know if you have further questions!
Cheers,
Holly W
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