No, the fact that it was in a 401k does not count. There is no provision for a first time homebuyer with a 401k. Unfortunately, you are liable for the penalty, unless another one applies.
Exceptions to the additional 10% tax apply for early distributions from an IRA that are:
- Made to a beneficiary or estate on account of the IRA owner's death
- Made on account of disability
- Made as part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
- Qualified first-time homebuyer distributions
- Not in excess of your qualified higher education expenses
- Not in excess of certain medical insurance premiums paid while unemployed
- Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
- Due to an IRS levy, or
- A qualified reservist distribution
