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?