Posted on: 08th Jan, 2007 08:49 pm
my wife and i have bought a house recently. just a week after closing, we came to know that we can use our ira towards a first time home purchase and each person can take out $10,000 towards qualified acquisition costs. we have got a 80-10-10 mortgage, 10% down payment. should we be able to use $10,000 from our iras without a penalty if we can put money in repaying our second mortgage based on 10% of the home.
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.
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are under the age of 59½ and want to withdraw money from your IRA, you will have to pay taxes on the amount of money withdrawn.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.
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are under the age of 59½ and want to withdraw money from your IRA, you will have to pay taxes on the amount of money withdrawn.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.
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?
Hi Vladimir,
As far as Im 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.
As far as Im 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.
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
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
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
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.
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
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
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
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
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
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.
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.
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.
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.
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....
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
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
My ex-wife and I owned a house together for the past two years. she was awarded the house in the divorce. Can I use my IRA without penalty to buy a house as a new homebuyer?