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Annuity to IRA - first time homebuyer downpayment


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Guest kbeers
Posted

I have an annuity from a previous employer of about $15,000 in TIAA-CREF. Is it possible to roll this over into an IRA (from what I understand it must be traditional)? Then at that point if the monies are in an IRA is it possible to take a portion for a downpayment for a first time homebuyer or would it be more beneficial to convert it to a Roth IRA and then take monies for a downpayment. In either case, what would be the penalities/taxes involved? Thanks.

Posted

You can roll it into a traditional IRA and take up to $10K for a qualified first time home purchase, penalty free. You will still pay income tax on the withdrawal.

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Barry Picker, CPA/PFS, CFP

New York, NY

Barry Picker, CPA/PFS, CFP

New York, NY

www.BPickerCPA.com

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