Legal Question in Administrative Law in California

Withdrawals from a 401(k) are often permissible, but subject to various rules depending upon the plan and the tax code. Often, you can make taxed withdrawals of at least some of the funds at any time, but untaxed withdrawals may be limited to certain purposes such as home purchases and higher education. Loans against a 401(k) are also possible. Really, however, you need to speak with your plan administrator to find out what you can and can't do in terms of withdrawals (with or without income taxation) or loans. It may well depend upon the purpose.

talk to your tax man about the penalties.