Not sure I’m following your math on this one. Of course it depends on your marginal tax rate on ordinary income but let’s assume 24% and that you need $200k cash. Tax on that incremental $200k is $48k plus 10% penalty if pre 59.5 so another $20k for $68k total tax.

Now assume you are using the taxable account and to receive $200k you’ll have a long term cap gain of $122k ($78k cost basis up 155% as a midpoint of your 130%-180%). Again depends on your overall income as these gains could be at 0,15,18.8 or 23.8% (all fed rates here) but assume 18.8% if you’re over $250k AGI and the cap gains tax is about $23k ($122k * .188).

I’d prefer paying $23k tax over $68k.

One more idea - depending upon timing if you are selling your current house but need a bridge, you could use Schwab Pledged Asset Line or Fidelity Securities Backed Line of Credit at 6-7% so as to avoid paying the cap gains tax. The math can make sense on this depending upon size and your timeline.

Hope that helps.

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