No, terminating employment isn't an exception to the early withdrawal penalty. If it was unexpected, it could possibly be considered an emergency. The IRS defines “emergency personal expense" as an unforeseeable or immediate financial need relating to necessary personal or family emergency expenses. (Section 115 of the Secure 2.0 Act)
An emergency will allow you to make a withdrawal, still subject to tax, but without the 10% early withdrawal penalty. You can take one financial withdrawal emergency per year, not to exceed $1,000.
