Your age and condition will determine how much you're subject to extra taxes. Generally, you will have a 10% penalty tax slapped onto your regular income tax rate if you're under 59 and 1/2. There are a few hardship exceptions like enormous medical bills and foreclosure prevention that the IRS will allow you to use to avoid extra taxes.

No matter what, withdrawing the $28,000 all at once may significantly raise your tax rate. It's worth noting that all Federal taxes aren't always taken off the 401k up front. Neither are state taxes. So, if you choose to withdraw the money all at once, make sure you have enough at the end of the year to pay extra taxes to the Feds and the state.

If it looks like you'll be heavily taxed, consider taking a small disbursement. You can always come back for more, if needed. If you manage to lock in another source of income generation, you may find preserving part of the 401k worthwhile. Unfortunately, it's pretty much impossible to make up this money, since you're struggling against time. I recommend you only withdraw all of the 401k if it's absolutely necessary to survive, since you're surrendering a key part of your retirement income.

It should be the last resort. Your 401K is for your retirement. You will be penalized if you are not 55 and 1/2 with 10% of the balance,plus the entire balance will be reported as income.

If you still want to withdraw, you can contact your 401K admin firm (number and website) on your qyarterly statement.