All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Valued Pioneer
Posts: 3
Registered: ‎04-29-2018
Accepted Solution

Withdraw from IRA for home purchase

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Hi,

I am buying a home. I am borrowing mortgage loan. However both my wife and me will be title owners of the home. Can we both both withdraw from our Traditional IRA accounts up to 10,000 with incurring 10% penalty?

 

Thanks,

Babu

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Council Member
Posts: 548
Registered: ‎04-06-2016

Re: Withdraw from IRA for home purchase

Yes, if your purchase qualifies as a first-time home purchase (which doesn't necessarily mean that it's the first home you've ever purchased, see more info at the link(s) below), you and your wife can each withdraw $10,000 from your Trad-IRA penalty-free.  Make sure you understanding the timing, etc.  More information can be found in IRS Pub 590-B on page 26: https://www.irs.gov/pub/irs-pdf/p590b.pdf , or at this non-IRS source: https://www.nolo.com/legal-encyclopedia/using-ira-make-house-down-payment.html .

 

Karen

Valued Pioneer
Posts: 3
Registered: ‎04-29-2018

Re: Withdraw from IRA for home purchase

Thanks.