The 10% early distribution penalty from a 401(k) account can be waived if your are permanently and totally disabled.
Note. You are considered disabled if you can furnish proof that you can't do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or be of a long, continued, or indefinite duration.
See IRS Tax Topic 558 - https://www.irs.gov/taxtopics/tc558
See IRS Publication 575 Pension and Annuity Income page 36 - https://www.irs.gov/pub/irs-pdf/p575.pdf#page=36
