First-time homebuyers can withdraw up to $10,000 from an IRA without penalty before age 59 1/2.

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This statement is true. According to the IRS, there is a provision that allows first-time homebuyers to withdraw up to $10,000 from their traditional or Roth IRA without a penalty as long as the funds are used towards the purchase or construction of their first home. However, income taxes may still apply on the withdrawal.

First-Time Homebuyers Can Withdraw Up to $10,000 from an IRA