You do not define what "near retirement" means in terms of your age. If you take money out of a 401k before you are 59 1/2, you pay a 10% early withdrawal penalty + ordinary income tax on the distribution. Using the money to pay for a house is not an exception to the 10% penalty for a 401k.
Any money you remove from your 401k or IRA is subject to ordinary income tax. You will get a 1099R for the distribution which you will need to enter on your income tax return. Using the money for a retirement home is irrelevant.
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