This $10,000 exception is a lifetime cap per individual . Married couples can each withdraw $10,000 for a total of $20,000 .
You can also use this exception to help a child, grandchild, or parent with their first home purchase . Tax and Penalty Breakdown
If you are under age 59½, the IRS allows you to withdraw up to penalty-free from a traditional IRA for a "first-time" home purchase .
Because traditional IRAs use pre-tax dollars, the full withdrawal amount is taxed as ordinary income at your current tax rate .
