https://ttlc.intuit.com/community/retirement/discussion/i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769201#M257940 I used cash to pay the down payment in 2024, then had several very expensive unexpected things to fix on the house due to being lied to by omission by the realtor, seller and inspector. In 2025 I had to pull from my IRA to pay basic expenses. Is there anything I can do to get out of the penalty? I started a daycare out of my home in 2025 also and have not had a lot of work until recently. Help? Tue, 10 Feb 2026 16:29:13 GMT user17703197478 2026-02-10T16:29:13Z https://ttlc.intuit.com/community/retirement/discussion/i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769201#M257940 I used cash to pay the down payment in 2024, then had several very expensive unexpected things to fix on the house due to being lied to by omission by the realtor, seller and inspector. In 2025 I had to pull from my IRA to pay basic expenses. Is there anything I can do to get out of the penalty? I started a daycare out of my home in 2025 also and have not had a lot of work until recently. Help? Tue, 10 Feb 2026 16:29:13 GMT https://ttlc.intuit.com/community/retirement/discussion/i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769201#M257940 user17703197478 2026-02-10T16:29:13Z https://ttlc.intuit.com/community/retirement/discussion/re-i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769237#M257942 <DIV data-subtree="aimfl,mfl" data-processed="true">In 2025, penalty-free IRA hardship withdrawals of up to $1,000 (edited) are available for specific, qualifying situations including&nbsp; <P><SPAN>unforeseen personal emergencies. These distributions are generally taxed as income but avoid the 10% early withdrawal penalty, with options for repayment within three years in some cases<SPAN>.<SPAN class="" data-wiz-uids="qZsVrd_8,qZsVrd_9" data-processed="true"><SPAN class="" data-animation-atomic="" data-wiz-attrbind="class=qZsVrd_7/TKHnVd" data-processed="true"><SPAN aria-hidden="true" data-processed="true">&nbsp;</SPAN></SPAN></SPAN></SPAN></SPAN></P> </DIV> Tue, 10 Feb 2026 19:04:14 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769237#M257942 Bsch4477 2026-02-10T19:04:14Z https://ttlc.intuit.com/community/retirement/discussion/re-i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769542#M257973 <P>No, a home purchase in 2024 cannot be used as an exception to the penalty on an IRS distribution made in 2025.</P><P>&nbsp;</P><P>The exception for emergency personal expenses is $1,000, not $10,000.</P> Tue, 10 Feb 2026 18:29:17 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769542#M257973 dmertz 2026-02-10T18:29:17Z https://ttlc.intuit.com/community/retirement/discussion/re-i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769616#M257980 <P>Oops, typo. Good catch.&nbsp;</P> Tue, 10 Feb 2026 19:02:34 GMT https://ttlc.intuit.com/community/retirement/discussion/re-i-wasn-t-aware-that-i-could-withdraw-from-my-ira-penalty-free-if-i-used-it-for-a-downpayment-i-ve/01/3769616#M257980 Bsch4477 2026-02-10T19:02:34Z