Ira Distribution For First Time House
May 17th, 2005
Question: IRA Withdrawal Timetable for First Time Home Owner?
We’re in the process of closing on a house, and had planned to use money from our IRAs to put towards the down payment and closing costs, as allowed as a qualified earlier distribution. However, we’ve hit an odd snag with my wife’s IRA, and we may not be able to receive the IRA distribution before the date of closing. If the IRA funds do not clear into our account until after the date of closing, can we still consider those funds as being used for that purpose, or does that prevent us from being able to use the exception?
Answer: First of all, congrats!
The withdrawal does not have to specifically apply to down payment or closing cost.
You can take a distribution for up to 10K penalty free, your wife can do the same, just make sure your IRA custodian/trustee report the distribution as one that meets an exception to the early withdrawal penalty.
$8000 Tax Credit for First Time Home Buyer Loan – Buy Foreclosures – RealEstateMarketingThisWeek.com
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