Should I invest more than my firm match into 401k or contribute to max match and then save the rest into saving account to buy home in less than a year ?

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You can take loan from 401k towards your first house, check out the option.

There is 10% penalty

How badly do you want to own a house? I prioritized it over retirement savings and bought our house at age 23. It has appreciated in value but not nearly as well as the market. My net worth would probably be double had I focused on investing instead. I do really like my house and not living in an apartment though.

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