mmvolfan your fears about the early withdrawal penalty are unfounded because there are two main ways to avoid such penalties. One of them is mentioned in the articles Cromacster listed - the Roth conversion pipeline. For this to work, you will have to have money available from another source for five years - whether its long term capital gains, interest income, drawing down on cash savings, etc.
The other is a 72t, or otherwise known as a SEPP. Using one of three formulas, you can withdraw a certain amount from a traditional IRA every year without penalty (of course, you still have to pay tax). However, once you start a 72t, it is very rigid. You must withdraw the amount the formula gives you, no more no less. Also, you must take at least 5 payments (five years of 72t withdrawals) or reach age 59.5 to not have to pay penalties on all previous 72t distributions.
I would look into both of these in great detail, and then reassess your hesitancy to max out your 401k.
