Ask Experts Questions for FREE Help !
Ask
    spmoore's Avatar
    spmoore Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 1, 2006, 06:12 AM
    IRA Withdrawal
    Hi, My husband and I would like to put a down payment on a house using my IRA account. I am a first time buyer, but my husband is not. Is there a way to avoid the 10% penalty? Also, should we have the taxes withdrawn now or wait until tax time?
    Thanks.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 2, 2006, 06:58 PM
    It does not matter if only one of you is the first time home buyer. Since YOU are the first time home buyer and the money is coming from YOUR IRA account, you can avoid the 10% early withdrawal penalty. You need to make sure the down payment and other expenses are properly documented and the money you withdraw is in fact used for the purchase of the house.

    You can wait until tax time to pay the taxes. It's likely your paycheck withholding will cover the added tax liability.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401K early withdrawal [ 15 Answers ]

I have a 401K question about early withdrawel. Actually, let me give you a scenario: 401K balance - $28000.00 I have the understanding that 20% is immediately taken out for federal taxes with an early withdrawel, which would be in this case $5600.00, and that would make the distribution...

401K early withdrawal [ 5 Answers ]

I have been laid off due to a work injury. To survive I must cash in my 401k, but I am trying to avoid the early withdrawal penalty. I have not yet been declared disabled but am currently pursuing this. Our family taxable income is only 26,000.00. I am currently receiving workman's compensation...

Early withdrawal [ 5 Answers ]

I need to withdraw my 401 K funds but have been told I can't do it because I am still working for the company. My total is fully vested. I don't qualify for a hardship withdrawel & already have 2 loans on it. Is there anything I can do?

401K Early Withdrawal Penalties? [ 11 Answers ]

Hello. I have a question about early withdrawal of my 401k due to changing employers. I am fully vested at my current company. I took a loan out from my 401k probably 6-8 months ago for personal reasons (not mortgage, etc.). Here are the details for that: I took out a loan of $2,868.01 and...

View more questions Search