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Using a ROTH as a down payment on a house


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Guest lilmishana
Posted

I have about $4500 in a Roth, I was thinking about using it as a down payment to my first home. It would be around 5% down. Can I use it without being taxed and penalized? Any help on this would be greatly appreicated.

Posted

It depends.

If you have made at least $4,500 in regular contributions, conversions or both, and have not taken any distributions from the Roth IRA to date, then the amount will definitely be tax and penalty free.

Otherwise, we would need more details to provide an accurate response ( of course , based on the information provided) . See the thread at http://benefitslink.com/boards/index.php?showtopic=19386&hl= for additional information

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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