This is like robbing Peter to pay Paul.
If you have sufficient earned income to contribute to a Traditional IRA then use that money towards the home and take less out of the 401(k) and possibly an additional 10% penalty if under age 59 1/2. They are both tax deferred accounts so there is no advantage to pay tax on one and deduct the other.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
