<prompt> Human: Would it be smart to max my 401k contribution at 18k and set aside 10k of that in low risk funds to be used in roughly a year for part of the down payment on a house? I wouldnt be taxed on the 10k and Im not worried about a return because the tax savings would more than make up for that. I can cover my expenses on my income post deduction. Am I reading the distribution rules correctly?  <response>: Youll pay taxes when you withdraw from your 401k. Theres no loophole when it comes to this. Just keep your down payment money in a savings account. 