Inherited IRA early distribution penalty? Hello, I have another question. I am also using an inherited traditional IRA for a first time home purchase down payment. I was told that i can withdraw the entire amount of an inherited IRA at any time without paying the penalty (I think it's 10%). I understand that I will have to pay taxes on the full amount because it is traditional IRA. So, am I correct in assuming that I will only have to fill out an IRA 8606 form, and don't have to worry about the IRA 5329 penalty waiver for first time home purchase? Thank you! |