I received 1099-R's for an early distribution (code J) from a Roth IRA for a first time home purchase. It was $6500 that I took out. That account hasn't been open for 5 years, however, the funds were

[ColeenD3]

Your question cut off.

You can always withdraw contributions (but not earnings) that you made to your Roth IRA tax and penalty free at anytime. Additionally, the Ordering rules for withdrawals from a Roth IRA are: first from regular contributions, then from Conversion and rollover contributions, on a first-in, first-out basis and finally from Earnings on contributions.

Please note: A qualified distribution from a Roth IRA is tax-free and penalty-free, provided that the five-year aging requirement has been satisfied and one of the following conditions is met:

• Over age 59½
• Death or disability
• Qualified first-time home purchase

A non-qualified distribution is subject to taxation of earnings and a 10% additional tax unless an exception applies. For Roth IRAs, you can always remove post-tax penalty contributions (also known as "basis") from your Roth IRA without penalty.

[datacarismo]

The part that was cut off was prior to the funds being rolled over to the Roth IRA they were in a work post tax 401k. The money has never been directly available to me. Even though the Roth IRA was not 5 years old do I still have to pay a penalty or does the fact that they were in a 401k count? 

[ColeenD3]

No, the fact that it was in a 401k does not count. There is no provision for a first time homebuyer with a 401k. Unfortunately, you are liable for the penalty, unless another one applies.

Exceptions to the additional 10% tax apply for early distributions from an IRA that are:

• Made to a beneficiary or estate on account of the IRA owner's death
• Made on account of disability
• Made as part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
• Qualified first-time homebuyer distributions
• Not in excess of your qualified higher education expenses
• Not in excess of certain medical insurance premiums paid while unemployed
• Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
• Due to an IRS levy, or
• A qualified reservist distribution