First off, and most important, internet
tax advice is worth exactly what you pay for it... NOTHING! You really should be talking to a tax professional about this, if you are not able to do the research
and understand the rules on your own.
That said, the short answer is, yes. If the home that you are purchasing
is your primary residence then it does not matter if it is a house, an RV, or a boat (so long as it meets the "residence" requirements). The withdrawal would be a taxable event. That is, you must report the amount you withdraw as income
, and pay income taxes
on it. You do not, however, have to pay the additional 10% penalty for early withdrawal.
Finally I will add that I would never even consider this option unless I had exhausted all other possibilities.