TOOK OUT $10000 AT AGE 55 TO BUY A HOUSE, DO I STILL HAVE TO PAY PENALTY 10%?

[VolvoGirl]

What did you take it out of?  IRA or 401K?

[Anita01]

If you take the money out of an IRA, and this is your first house, then the 10% penalty can be excluded.  First house means you have not owned a primary residence for 2 years before the purchase closing date.  

If you took the withdrawal from anything but an IRA, you do owe the penalty.