Author Topic: Funding a first-time home purchase; IRA/Roth distribution questions  (Read 1317 times)


  • 5 O'Clock Shadow
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  • Posts: 20
I searched for this on the forum but couldn't find exactly the answer I was looking for.

I'm thinking about buying a home in the next couple of years and I'd like to make sure I understand the rules for first time home buyers who want to fund part of their purchase with money from retirement accounts.  Can you guys please verify that I'm understanding this correctly?

As I understand it, I can take $10,000 out of a traditional retirement account (which will be taxed, but no penalties).  I can also take as much as I want out of my Roth where contributions are concerned, as well as an additional $10,000 for earnings (as long as the account is 5 years old), and this is not taxed.  That makes for a total of $20,000 that I normally wouldn't be able to touch, as well as any contributions to my Roth.

Am I correct or do I have this wrong?

Thanks guys!


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