Retirement tax questions

First of all it goes on your tax return for the year you take it out.  So if you withdraw it by Dec 31 it goes on 2017.  After Jan 1 it goes on next year's 2018 return We file in 2019.

You will pay tax on a Traditional IRA distribution. It will add to your other income and may push you into a higher tax bracket.   If you are under 59 1/2 there is also a 10% Early Withdrawal Penalty unless you have an exception.  I believe medical is an exception.  See IRS publication 590B for IRA Distributions
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p590b.pdf">https://www.irs.gov/pub/irs-pdf/p590b.pdf</a>