[raybbr]

You can’t take money from your 401k until you separate from the company sponsoring the 401k. In other words you have to quit, get laid off, or be fired.

I think the law was changed last year so you could. You will still be subject to the tax and 10% penalty if you are not at the qualifying age.

[Balding_Eagle]

You’re right, thanks.

[Apogee]

If the law was changed just last year, I think it even more likely that it was done so that all this talk would get a lot of people to give up some money in penalties, effectively getting people to voluntarily pay a tax so they could stave off a forcible one for a bit.

Almost all actions of “the market” boil down to an impulse based on either fear or greed (to use the basest terms), making it easily manipulable. Only floating the idea of public comment on taking 401ks is enough to get a lot of people to freely surrender money they would otherwise keep. If enough do so, there will be no need to actually take the money for a little longer.
We won’t panic, but we will make you regret actually taking it, may be a better approach.