I w/d 11k out of 401k as a withdrawal for the primary purpose of a first time buyer down pymnt. Im also getting a 6000 dollar gift plus a $13,000 401k loan for the rest. However escrow is now delayed until January 10th. Since I have already taken the withdrawal can I simply put the money into an IRA and withdraw it again since less then 60 days and after January 1st thereby having no penalty and I will forgo the taxes hang on them at least until 2016 ?

I w/d 11k out of 401k as a withdrawal for the primary purpose of a first time buyer down pymnt. Im also getting a 6000 dollar gift plus a $13,000 401k loan for the rest. ======>>>>>>>>>>>>It depends on your employers 401k Rules; However, the IRS makes it very difficult, and it is all but impossible to complete the maneuver without facing stiff penalties and taxes. In addition, if you are younger than 59 ½, any money that you withdraw from your 401k to buy a house is subject to the appropriate income taxes. You will also pay a 10 per cent ‘early withdrawal penalty’ - there are also two ways of taking the money out: first,you can take out the money and repay it into the 401k plan over time ; aslongas your 401k plan requires you to repay your loan to the plan, and you decide to move to another company or get fired, you are responsible for coming up with the entire lump sum of what you borrowed within a short period of time.
Second; you can take it out and not repay it. Your employer or plan administrator will provide you with a list of the requirements. An alternative to making a 401k hardship withdrawal to buy a house is to consider a 401k loan.

Most 401k loans are agreed regardless of your needs and it can be very easy to obtain a loan against your retirement plan. When you borrow from your 401k plan you also benefit from the interest that you pay. This is because the interest that you pay goes back into your 401k plan. For example, if you borrow $5k and pay back $6kin total, the extra $1k goes into your 401k plan.disadvantages of borrowing from your 401k to buy a house are; if you default on your 401k loan payment it is treated as a distribution. This means that your money is taxed and you have to pay the 10 per cent early withdrawal penalty if you are aged under 59.5.

However escrow is now delayed until January 10th. Since I have already taken the withdrawal can I simply put the money into an IRA and withdraw it again since less then 60 days and after January 1st thereby having no penalty and I will forgo the taxes hang on them at least until 2016 ?==========>>>>>>>>>as said, aslongas amounts withdrawn from your 401(k) plan and used towards the purchase of your home will be subject to income tax and a 10% early-distribution penalty. This applies even though the distribution will be used towards the purchase of your first home, because the first-time homebuyer exception does not apply to distributions from 401(k) plans. Furthermore, if the amount you receive is rollover eligible, your ER is required by law to withhold 20% for federal tax, unless the amount is rolled directly to an IRA . YourER must tell you whether the amount is rollover eligible; say, you are eligible to receive the distribution and the amount is rollover eligible, you may instruct the 401(k) admin to process your distribution as a direct rollover to an IRA. This will ensure that the 20% federal tax withholding is not applied to the amount. Additionally, you can then withdraw the amount from your IRA for use towards the purchase of your first home, thereby avoiding the 10% early-distribution penalty. Remember, the maximum amount that may be distributed from the IRA on a penalty-free basis for the purpose of buying a first home is $10k. This is a lifetime limit.