Why would anyone contribute more than their employer match if they are trying to purchase a home as soon as possible? An IRA only allows you to withdraw up to 10k penalty free and a 401(k) requires you to take a loan (50k max with interest), otherwise you’re hit with a 10% penalty on top of paying income tax. Genuinely curious because it’s more logical to max out your Roth IRA, 401k up to the employee match, and then dump the rest in your brokerage so your savings aren’t locked until you’re 59.

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I don't think anyone ever claimed otherwise...?

If you're trying to purchase a home ASAP, you'll minimize your investments (at least get the 401k match since it's basically free money) and keep the rest in more liquid accounts like an HYSA (and maybe some ibonds). You could do brokerage as well but that is more risky on shorter time frames, and you said ASAP which makes me think investing wouldn't be the wise choice.

As for investments being locked until 59, that's not entirely true. You can do a Roth conversion ladder and access everything early. Roth contributions can be withdrawn anytime and Roth conversions can be withdrawn after 5 years; no penalty for either.

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If you pay no tax on the Roth conversion, like backdoor Roth IRA, the 5 year rule doesn’t apply. Just to add to your comment which I wholly agree with

Ask my ex - I still don’t understand it…

It is a balancing act but tax advantaged space is more valuable. Ignoring current needs is a bad idea also

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Take a 401k loan and pay yourself back over time. Tax advantaged space is valuable, if you don’t use it you lose it

Do you have to pay it back with post-tax dollars? That could be the only downside if you are going to get taxed twice on those funds

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