Financial Planner's Errors and Omissions

[lmbl]

My question involves if I have an errors and omissions claim against my financial planner who lives in TN (I live in NC). I purchased a home in September of 2011 after my ex-husband and I divorced. The money that I used for the down payment was part of an IRA that was designated to me as part of my divorce settlement. My real estate agent mentioned that as a first time home buyer, I could use IRA funds and the funds would be taxed as though it was income and with no penalty applied. I began communicating with my financial planner in regards to my plans. He held out taxes but not enough for the penalties. I later found out from my accountant that the limit you could take out as a first time home buyer is $10,000 without incurring a penalty. At no time did either my real estate agent or financial planner advise me of this limit. As a result, my taxes were over $5,000 for state and federal, respectively. If I had known about the limit, I would have looked at a less expensive home or reconsidered the purchase all together. Do I have grounds for an E&O claim and how would I go about to begin the process?

[Mr. Knowitall]

From what you've told us, it would appear that you instructed you financial planner that you wanted to withdraw $X from your IRA so that you could buy a house. You have not indicated that you told your financial planner that you were concerned about taxes or penalties. It would appear that your financial planner followed your instructions. Please fill in any missing details.