IRA First Time Homebuyer Exclusion

[duanecpa]

Is the exclusion of up to $10,000 for IRA withdrawals for first time home buyers a per person exclusion?

I have a married couple who each took up to $10,000 from their IRAs to purchase their first home. For a MFJ return, is the exclusion then up to $20,000 - each spouse has up to a $10,000 exclusion?

Thank you.

[Koss]

Yes

Yes, if both spouses meet the criteria for a first-time homebuyer.

The following text is from IRS Publication 590:

TIP

If both you and your spouse are first-time homebuyers (defined later), each of you can receive distributions up to $10,000 for a first home without having to pay the 10% additional tax.

First-time homebuyer. Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement.

You'll need to do a separate Form 5329 for each spouse.

BMK