Answer:
Fred, at the age of 45, took an early distribution of $25,000 from his Traditional IRA to purchase a home. Since he hasn't owned a home in the last 6 years, he may be eligible for an exemption from the 10% early withdrawal penalty on up to $10,000 for a first-time home purchase. Therefore, the portion of his withdrawal subject to the penalty would be $15,000 ($25,000 - $10,000). It's important to note that tax regulations vary, and Fred should seek advice from a tax professional to ensure accurate information based on his specific circumstances.
