Under the 1997 Taxpayer Relief Act, first-time home-buyers can now withdraw up to $10,000 penalty-free from an individual retirement account (IRA) for a down payment to purchase a principal residence. This $10,000 is a lifetime limit. The law defines a first-time home-owner as someone who hasn’t owned a house for the past two years. If a couple is buying a home, both must be first-time homeowners. Ask your tax accountant for more information, or contact the IRS at (800) 829-1040 or their Website at www.ustreas.gov .
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