Not sure how a rollover get's your withdrawal accomplished. The original concept was to get money out "interest free". Agreed the IRA can be more flexible, but the idea was to get money out. Rollover just moves the assets around. A fair number of current 401(k)s do allow the same instruments as IRAs, but if your objective was a straight withdrawal - this doesn't achieve you objective. If you really need the money take the loan. Talk to your 401(k) trustee before you do something you really regret. Home purchase and hardship withdrawals can also be done and I Believe these avoid th 10% early withdrawal penalty, but you don't avoid the tax. Some plans will also freeze you out after an early withdrawal and that becomes really expense if your employer matches.