ROTH IRA Withdrawl

[Guest Ian Fownes]

My wife and I have been contributing to our ROTH IRA for 3-4yrs now. We are in the process of purchasing our first home and were wondering if we could use some of this money from the Roth towards the down payment?

If so, are there any stipulations and how do we go about doing this?

Thanks,

Ian

[Guest IRA SPECIALIST]

Contact the institution for instructions on how to request a distribution.

Any amount up to the amounts contributed as regular IRA participant contributions will be tax and penalty free.

Since you have not had the Roth IRA for five years, you will pay taxes on any amount to the extent that such amount represents earnings on your Roth IRA contributions ( based on the ordering rules, the contributions are withdrawn first, conversion amounts second and earnings last).

The 10% penalty will not apply, as you are withdrawing to purchase a first home.