IRA Withdrawal for Mortgage payment

trishtroxler · Joined: 06 Jul 2008 Posts: 1 1.27 Dollars($)

Just lost my job and need to take money from my IRA to cover my mortgage. Is there a way of doing this without being penalized 10%?

adonis · Posted: Sun Jul 06, 2008 9:20 pm Post subject:

Welcome Trishtroxler,

What type of IRA is it? if it's an Individual Retirement account and you're taking out money to make mortgage payment, then I'm afraid there's no way you can avoid the 10% penalty except if you're 59 and 1/2 years old.

charlesarmbruster · Posted: Tue Jul 08, 2008 10:44 am Post subject:

Yes -- check with your fund! Normally, if monies redeemed/withdrawn are repaid to the fund within a certain time frame, your use of the money is not considered taxable at year-end. Otherwise, certainly you get taxed for redeeming your savings, even for use as mortgage payments.

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