Every IRA owner is eligible to make a withdrawal from their IRA without having to have to pay the 10% additional tax on up to $10,000 of distributions you receive to buy, build, or rebuild a first home. To qualify for treatment as a first-time home buyer distribution, the distribution must meet all the following requirements:

1. It must be used to pay qualified acquisition costs (defined next) before the close of the 120th day after the day you received it.
2. It must be used to pay qualified acquisition costs for the main home of a first-time home buyer (defined below) who is any of the following.
1. Yourself.
2. Your spouse.
3. Your or your spouse's child.
4. Your or your spouse's grandchild.
5. Your or your spouse's parent or other ancestor.
3. When added to all your prior qualified first-time home buyer distributions, if any, total qualifying distributions cannot be more than $10,000.

If both you and your spouse are first-time home buyers (defined later), each of you can receive distributions up to $10,000 for a first home without having to pay the 10% additional tax, but will still be subject to ordinary income taxes.

How do I actually request the withdrawal?
Withdrawing for the purchase of your first home is as easy as visiting our Withdrawals Page and requesting a withdrawal of up to $10,000.

How do I claim my exemption for the first time home buyer withdrawal when filing my taxes?
You must use Form 5329 to report the tax on early distributions. There will be a section to input early withdrawals that are penalty free. You can add up to 10,000 in this box for your first time home buyer's withdrawals.