It all depends on how much you withdraw from your IRA (assuming you rolled over your 401(k) into an IRA), as well as your other income and your age. If you are younger than 59 1/2 years old you could be hit with a 10% penalty in addition to the tax liability portion. A short-term personal loan from a bank, credit union, or cash value life insurance policy is a better bet than a withdrawal from the IRA: no taxes. If you make the IRA withdrawal, the trustee will withhold 10% federal tax. You may pay more tax (plus possible penalty) when you file the return.