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jerry · Posted: Thu Nov 19, 2009 3:43 am Post subject:

Hi sssmith,

A first time home buyer is allowed to withdraw a maximum of $10,000 from his IRA. If he is married, his spouse can also take out $10,000 from her individual IRA and thus as a married couple they can both withdraw a total of $20,000. A first time buyer is one who has not owned a primary residence for the past 2 years. The rules do not specifically mention that the mobile home has to be on a permanent foundation in order to qualify as a first home. You should be able to withdraw $10,000 from your IRA to purchase the mobile home.

Hi Tiffany,

Your husband will be able to withdraw a maximum of $10,000 from his IRA. It does not matter whether or not he is on the loan. If he is a first time home buyer, he can withdraw money up to the specified limit without paying any penalty. It is not necessary for him to co-sign on the loan with you in order to be eligible to take out money from IRA.

Thanks,

Jerry

Guest

I have never owned a house but considering purchasing a fifth wheel RV and living in it permanently. Can I use my Simple IRa and Roth funds to contribute to the purchasing of the RV? I will be buying the RV outright no loans, ect I am under 53 and have had these accounts for only a couple of years.

jenkin7 · Posted: Tue Jan 26, 2010 2:12 am Post subject:

Hi Gerry,

If you are under the age of 59½ and want to withdraw money from your IRA, you will have to pay taxes on the amount of money withdrawn. You will have to pay penalty of 10% on the withdrawal amount and certain amount of taxes. However, if you are purchasing a property as your first home and as your primary place of residence, you will be able to use money from your IRA to buy the property. But you can withdraw only about $10,000 without penalty. If you want to withdraw more than that, you will have to pay penalty and taxes.

Guest

I'm currently living in MA and I am buying a home in NH. I am a first time home buyer. Am I able to withdraw from my IRA $10,000 and not pay MA State income if I withdraw the funds after I move/closing date?

savior70 · Posted: Fri Feb 26, 2010 6:59 am Post subject:

Hi Vladimir,

As far as I’m aware of, you can withdraw $10,000 from your IRA to purchase a home as a first time home buyer. But you cannot make the withdrawal 120 days before the closing date. Thus, you need to use the money towards buying the property before the 120th day from the date you receive the distribution from your IRA.

Guest

can i withdraw up to $10,000 from my ira without penalty to put towards a subdivision lot? i know i can do so without penalty to put towards "expenses" of a first time home...but does that apply to a lot that i buy now and build a house on in several years? it's going to be my residence eventually but it wont have a house on it fore a while. this lot would also be my first time to buy any property. thanks

jerry · Posted: Mon Mar 22, 2010 2:47 am Post subject:

Hi clint,

You are unlikely to qualify for the penalty-free withdrawal from your IRA accounts. To qualify for it, you need to be a first time buyer and you must use the property as your primary residence. Since you are purchasing a lot and you are not going to use it as your primary residence immediately, you will not be able to withdraw money from your IRA account without the penalties.

Thanks,

Jerry

Guest

We're in the current economic crises; under water on our home mrtg., 1 unemployed for past 2 1/2 years, other on DROP program for 4 1/2 more years. We've used 1500/ mo. from IRA to pay mrtg for past 2 years, and 1200/ mo from other to pay rest of bills for past 6 mos as unemployment ran out and waiting for approval for dissability. Trying to sell property in Tenn in poor market. can't get mortg co BOA to help w/ modification (won't talk to us). thinking stopping IRA withdrawels and mrtg payments, putting money back into IRA from property sale.

jameshogg · Posted: Tue Sep 14, 2010 10:52 pm Post subject:

Hi jim,

I guess as you're current on your mortgage payments, the lender is not ready to consider your request for loan modification. If you want to get rid of the property, then you should stop the mortgage payments and request the lender for a deed in lieu of foreclosure. This will not only help you in getting rid of the property but you won't be liable for paying the balance loan amount resulting from property sale.

Thanks

Guest

I bought my first house last October.I have $12,000 mortgage loan left right now. Can I cash my traditional IRA account for $10000 to pay off my loan without the 10%penalty?Thank you

jameshogg · Posted: Tue Nov 23, 2010 10:16 pm Post subject:

Hi Mandy,

If you are 59 and 1/2 years old, then you will be able to take out a loan from your IRA account and pay off the existing mortgage without 10% penalty.

Thanks

Guest

My home was wrecked by contractor all work needs redone,I am 61
It will take 30,000 to fix my home handicap it ect. I am living in one room,my home paid off ins husband passed.No one should live this way have money in IRA,my life is sad,have no legal recourse paid contractor cash saved.sorry you don't need rest of story it gets worst.

adonis · Posted: Sun Feb 27, 2011 10:04 pm Post subject:

Welcome mrann,

You will be able to withdraw money from your IRS. As you're 61 years old, you won't be liable for paying any penalty for the withdrawal.

Guest

Not a first-time home buyer. Took out $150,000 from IRA, no penalty, I am 64, but what I forgot is....I have to pay regular income tax on this money. Right??? Hope not....

smithsussane · Posted: Sun Jun 12, 2011 10:40 pm Post subject:

Hi Deanz!

Welcome to forums!

You are responsible for filing the Form 990-T if you've borrowed money from your IRA funds. You should contact a CPA and he will further guide you in this regard.

Feel free to ask if you've further queries.

Sussane

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Can we use our IRA funds for a house without penalty?