Suppose I put in 2k for 1999, 2000, 2001. I trade this 6k to 16k. Now, in 2002, I'm buying a first new home. I read you can take out 10k for a first new home. So can I take out 16k and only pay taxes on my 10k gain with any penalties? Is there something specific I need to do to let the IRS know I took it out for a new home? I should be able to take out my original 6k with no problems, right? Thanks!