Based on what you described, you would not qualify for the
exception that you asked about.
If you cashed out your 401k only because you quit your job,
then there is not an exception for paying the early distribution penalty. Your distribution will be subject to income
tax and the 10% early distribution penalty unless one of the other exceptions
applies. The one you asked about would
be valid if your employer had terminated the retirement plan for all employees
and your amount was distributed to you as a result.
