Dave T Posted February 26, 2009 Report Share Posted February 26, 2009 Have a married couple who became first time home buyers in 2008. Each tapped their IRAs to make the purchase. She for almost 10K and he for 4K. I know that first time home ownership is one of the exceptions to the 10% penalty and that the limitation is up to $10K My question is, is the 10K per IRA or in total, as in this case the total was almost 14K or would the entire amount be exempt from the penalty seeing it came from two different accounts? Thanks Dave T Quote Link to comment Share on other sites More sharing options...
bigdadder Posted February 26, 2009 Report Share Posted February 26, 2009 According to the IRS publication, both are allowed a maximum of $10,000. "When added to all your prior qualified first-time homebuyer distributions, if any, total qualifying distributions cannot be more than $10,000. 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 it is okay for the couple and they should not be charged the 10% penalty. Bigdadder Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.