I want to withdraw funds from 401k while I am still working. I am 65 and the funds would be for the purchase of a home (1st time buyer)

Whether your employer's plan allows you to make a hardship withdrawal for the purpose of purchasing a home depends on the specific terms the plan. Most 401(k) plans allow active employees to make a withdrawal for this, but not all. So ask your HR department. For more information on hardship withdrawals, see: Retirement Plans FAQs regarding Hardship Distributions (http://www.irs.gov/retirement/article/0,,id=162416,00.html)