If I tool $$ from an IRA for downpayment on a home I purchased is the whole amount taxable? Taxes were taken o

Question

Distributuion code off form 1099R is 01

Answer 1

All taxable.

1st $10,000 is exempt from the penalty if it was for a first time home purchase.

Answer 2

The amount of the distribution is taxable, but using the money for the downpayment of a "first" home is would exempt you from the early withdrawal penalty (10% additional tax). For purposes of defining a first time home buyer, if you have not owned a home within the last three years, you are considered a first time home buyer.