Only the 10% early withdrawal penalty is waived under the first-time homebuyer exception .

This $10,000 exception is a lifetime cap per individual . Married couples can each withdraw $10,000 for a total of $20,000 .

If you are older than 59½, you can withdraw any amount for any reason without penalty, though you still owe income tax . Understanding the First-Time Homebuyer Exemption

You can also use this exception to help a child, grandchild, or parent with their first home purchase . Tax and Penalty Breakdown