NO. If you are under 59 1/2 using money from your 401k to make a down payment on a house is not an exception to the 10% early withdrawal penalty. That rule is only for a traditional IRA, not a 401k. If you take money out of your 401k to buy a house before you are 59 1/2 you are subject to the 10% early withdrawal penalty and the ordinary income tax on the distribution--a pretty expensive way to make your down payment.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
