roth IRA first time home buyer withdrawal question

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turkey1234
Posts: 20
Joined: Tue Sep 25, 2018 8:45 am

roth IRA first time home buyer withdrawal question

Post by turkey1234 » Wed Nov 07, 2018 9:21 am

My husband and I closed on our first home for both of us in February 2018. We gutted it and I"m wondering if we can still take out money this year and have it qualify towards our first home? We meant to take it out earlier this year but now I'm questioning if it qualifies within the same year? I saw about withdrawing and then buying 120 days later but can we remove it after closing on a house?
Thanks.

retiredjg
Posts: 34155
Joined: Thu Jan 10, 2008 12:56 pm

Re: roth IRA first time home buyer withdrawal question

Post by retiredjg » Wed Nov 07, 2018 12:20 pm

I don't know if the exception is OK after the home is bought, but it may not matter. You can take out your contributions, not the earnings, out of Roth IRA at any time for any reason with no penalty.

It will be recorded in Part III of Form 8606 for your taxes. There is a worksheet in the instructions to help you decide what money is available without penalty.


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