If you take the money out of the retirement account, the plan will send you a 1099R in late January or early February. The money you take out will be taxable, and you will need to enter information from the 1099R on your tax return. The financial institution that has the account will withhold at least 20% for federal tax; you might need to have them withhold state tax too. The amount of money you get will be entered on your next tax return, along with the amount that they withheld for tax. Depending on your other income, you might owe more tax, or you might get a refund of some of the tax that was withheld at the time of the distribution.
Oh--and you asked if you should take the money or get a loan from the fund. That is not a choice for anyone in this forum to make for you. If you get loan, the loan is not taxed, but then you have an amount of time to pay it back or else it becomes a taxable distribution. Talk to the financial institution to find out how much you have in the account, etc. and how much you can borrow against it if you choose to take a loan on it, and ask them what the repayment requirements will be to avoid taxes. If you have just been leaving the money in the account for these past several years, you should find out what it worth now and then decide what to do with it. You could also roll it over into a different retirement account.