USA IRA Withdrawal for Retirement Home

TS7

Joined
Jul 7, 2015
Messages
1
Reaction score
0
Country
United States
Hi,

Need some help with a question regarding an IRA withdrawal and tax penalty. We had heard that if we purchase a retirement property using the entire amount of our IRA and match dollar-for-dollar the amount of the home we're purchasing (ex. IRA withdrawal $120,000 / Property cost $120,000) we do not have to pay tax on the IRA monies we withdrew. Is this correct??

Thank you,
Tammy
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,445
Reaction score
332
Country
United States
Sorry, no. IRS allows you to only use 10,000 on a first time home purchase from an IRA and there is tax on the 10,000 but no added 10% early withdrawal penalty. The term "first time" is complex and also applies if you have not had a principal home for 2 years. Those are only the basics so be sure to look up IRS publication 590 if you plan to proceed
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top