Is using money from a 401k a "permissible section 414 withdrawal"

[xmasbaby0]

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.