The qualified first-time homebuyer distribution available in IRAs has a maximum lifetime limit per participant...

The IRS allows a penalty-free distribution of up to $10,000 from an IRA for qualified first-time homebuyers, provided the funds are used for eligible home purchase expenses.

$10,000 (C): Correct. This is the lifetime maximum allowed per participant.

$2,000 (A) and $5,000 (B): Too low for the current IRS rules.

$20,000 (D): Exceeds the limit and is incorrect.