Early withdrawal on 1099R.

[Carolj26]

Does a first time homebuyer count as an exception to the penalty

[Opus 17]

If you withdraw money from an IRA in order to be a “first time home buyer”, you can exclude up to $10,000 from the 10% early withdrawal penalty. All IRA withdrawals are always subject to regular income tax, and the first time homebuyer penalty exception does not apply to other forms of retirement accounts such as a 401(k) or 403B.

To qualify as a first time buyer for this provision, you cannot have owned any part of the home you lived in for at least two years prior to the purchase of your current home. You must also withdraw the money within 120 days before your closing.