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help on tax implications


Guest ah7736

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Guest ah7736
Posted

Can someone please help me? If an individual wishes to withdraw contributions only from a Roth IRA for the purpose of purchasing a home as a first time homebuyer, but the IRA has only been in existence for four years, what would be the penalty?

Would you only have to pay the 10% early distribution, would you have to consider these monies as income along with the 10% early distribution penalty, or would this be considered a qualified distribution? Any help on this matter would be greatly appreciated. Thanks

Posted

If you are talking about withdrawing the $2,000 per year contributions, those can be withdrawn at any time, for any purpose, without tax or penalty.

Barry Picker, CPA/PFS, CFP

New York, NY

www.BPickerCPA.com

  • 2 weeks later...
Guest Jane Stack
Posted

I need a basic primer on the distribution phase of Roth IRA's. I understand that the owner of the Roth can withdraw funds tax-free. What about the owners beneficiaries?

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