I think you need to make some planning decisions that go far beyond just buying a condo (though I think it’s a terrific idea for those cold winter months.)
But let’s say you live another 25 years — as the actuarial tables suggest you will. Taking a hunk out of your 40l(k) now, could impact you substantially later. And the money you withdraw will be added to your ordinary income — pushing you into a higher tax bracket — and perhaps requiring you to temporarily pay more for Medicare Parts B and D.
There are other big planning issues. Are you willing to move to Florida full time, and perhaps just visit relatives up north in the summer? If you become a Florida resident there could be positive tax impacts. Right now, retirement withdrawals and SS are not taxed as income in Illinois. But that might change in the future.
And you might consider renting for a while, to make sure you’ve found the city/area in Florida that suits you. It’s easier to buy than to sell most of the time. Plus, you won’t qualify for a mortgage if you’re both retired.
I think this is a perfect time for you to meet with a FIDUCIARY fee-only financial planner. The first meeting should be free — and can point you in the right direction. Go to www.wealthramp.com to find a fee-only fiduciary financial planner you can trust.