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You can take money from an IRA but not a 401K. You might be able to access the money using a hardship w/d however this will not make you exempt from the early w/d penalty. The only way to use the 401K money w/o penalties would be to roll the funds over to an IRA and then take the distribution as a first time homeowner.

Unfortunately, most plans wont allow you to move the funds if you are a current employee.

Hope this helps.

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