Using retirement funds

[Costel A.]

I have a 403(k) retirement plan with Fidelity. I talked to them today about using some of my retirement money to start investing in real estate. They said that I need to transfer this money to an IRA then I'll have more freedom, I can withdraw the money and it's up to me if I want to put the money back later or not. For this I am going to be penalized (10%) and I also have to pay taxes on the withdrawn amount. I knew this would happen if I just wanted to take some money out before being 60, but since I am using the money for investing I was hoping that I am not going to pay any taxes or to be penalized since I am just switching from stock and bonds to RE. Maybe they didn't pay attention when I said I want to invest this money not to buy a nice car.

Any thoughts about this?