Peter opened his IRA in 2003and withdrew money to purchase a house in 2012.Since the distribution qualified as a "qualified first-time-homebuyer expenses," it is not subject to the 10% early withdrawal penalty.

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According to IRS rules, a "qualified first-time-homebuyer expenses" distribution from an IRA is exempt from the 10% early withdrawal penalty if it meets certain qualifications, such as being used to purchase or build a first home. As long as Peter meets these qualifications and properly reports the distribution on his taxes, he should not be subject to the penalty.

Peter Opened His IRA in 2003and Withdrew Money to Purchase