Do you mean for a down payment on a home? No. If you take money out of a traditional IRA you can avoid the 10% early withdrawal penalty on $10,000 But that is not true for taking money out of a 401k. If you are younger than 59 1/2 and you took money out of your 401k you are subject to the early withdrawal penalty and ordinary income tax as well----so it is an expensive way to make a down payment.