What is a lifetime limit for qualified first-time homebuyer expenses from a Roth IRA?

The lifetime limit for qualified first-time homebuyer expenses from a Roth IRA is $10,000. Individuals can withdraw up to this amount from their Roth IRA without incurring the usual penalties or taxes, provided the funds are used for qualified expenses related to purchasing a first home. This provision is designed to assist first-time homebuyers in gathering the necessary funds for their down payment or other related costs.

The $10,000 limit applies per individual, meaning that if both spouses are first-time homebuyers and each has a Roth IRA, they could effectively withdraw up to $20,000 combined. This financial flexibility is particularly beneficial for those entering the housing market for the first time, allowing for a more accessible path to homeownership.