Comments on: IRA Withdrawal Penalty Exception for First Time Home Buyer?

By: Judy

Judy — Wed, 23 Sep 2009 11:43:51 +0000

Not from the same IRA – but if you each have one, each of you could take out $10K from your own IRA without the 10% penalty – you’d still have to pay the income tax that year though..

By: Helen, EA in PA

Helen, EA in PA — Sun, 20 Sep 2009 19:21:57 +0000

Bryan

VB is correct, the other response is not.

Helen, EA in PA

By: v b

v b — Sat, 19 Sep 2009 16:01:45 +0000

Marilyn

The pension plan is tied to *your* SSN. Only you can take out $10K and pay income taxes, but not penalty.

If your wife has her own IRA under her *own* SSN, she can take out $10K as well.

By: 123456789

123456789 — Fri, 18 Sep 2009 00:19:13 +0000

Rita

In publication 590 from the IRS:

“If both you and your spouse are first-time homebuyers (defined later), each of you can receive distributions up to $10,000 for a first home without having to pay the 10% additional tax.”

So that would give you the penalty exception. You’d just have pay to the regular tax.