Using Roth IRA's for first time home buying.

[Guest Joshua Dix]

Hello,

I am currently contributing to a 401 (k) which I will likely roll over to a Roth IRA in 3-5 years when I resign from my job to move. I know that you can use a Roth IRA towards purchasing your first home however, I have a technicality. I may be getting engaged soon and would likely be married at the time of the home purchase. My significant other is currently a homeowner. Would I still be able to use my Roth IRA to purchase the home or would I be disqualified due to previous ownership by my prospective wife?

Thanks for any help.

Joshua Dix

[WDIK]

I don't have the proper letters behind my name to make an authoritative interpretation, but the following excerpt (particularly the last sentence) from Publication 590 seems to indicate that you would not qualify.

First-time homebuyer. Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement.

[Guest Joshua Dix]

I had a feeling that would be the case. Thanks again!