Peter opened his IRA in 2003 and withdrew money to purchase a house in 2016.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 distribution from an IRA before age 59½ can be subject to a 10% early withdrawal penalty, however, there are certain exceptions including for qualified first-time homebuyer expenses. As Peter withdrew money to purchase a house and the distribution qualified as a "qualified first-time-homebuyer expenses," it is not subject to the penalty. Therefore, the statement is true.

Peter Opened His IRA in 2003 and Withdrew Money to Purchase