No. You are probably confusing the rules for 401(k) plan withdrawals with those for IRAs, where it is possible to withdraw up to $10,000 in home acquisition costs for the principal residence of a first-time home buyer.
There are, however, four ways to avoid the 10% early withdrawal penalty on 401(k) plan withdrawals:
1. Remain with your employer until you turn 55 and then retire.
2. Take "substantially equal" fixed payments according to IRS rule 72(t).
3. Make payments required to pay child support, alimony, or a settlement to a former spouse as required by a Qualified Domestic Relations Order (QDRO).
4. Make withdrawals if you become permanently disabled.
In addition, there is no penalty on distributions made to a named 401(k) plan beneficiary if you die.
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