Hi, My husband and I would like to put a down payment on a house using my IRA account. I am a first time buyer, but my husband is not. Is there a way to avoid the 10% penalty? Also, should we have the taxes withdrawn now or wait until tax time?
Thanks.

It does not matter if only one of you is the first time home buyer. Since YOU are the first time home buyer and the money is coming from YOUR IRA account, you can avoid the 10% early withdrawal penalty. You need to make sure the down payment and other expenses are properly documented and the money you withdraw is in fact used for the purchase of the house.

You can wait until tax time to pay the taxes. It's likely your paycheck withholding will cover the added tax liability.