IRA withdrawal for a first home
Up to $10,000 penalty-free
Can You Write Off IRA Withdrawal for a First Home?
Short answer: Up to $10,000 lifetime from an IRA for a first home skips the 10% penalty (not the income tax); 401(k)s don't have this exception.
Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.
IRA withdrawal for a first home
Typical range: Up to $10,000 penalty-free
Individuals / Personal Taxes
Up to $10,000 lifetime from an IRA for a first home skips the 10% penalty (not the income tax); 401(k)s don't have this exception.
Business justification
Up to $10,000 lifetime from an IRA for a first home skips the 10% penalty (not the income tax); 401(k)s don't have this exception. Withdrawals before 59½ are taxed as income plus a 10% penalty unless an exception applies; exceptions waive the penalty, not the income tax.
Category
- Personal Tax Deductions