Author Topic: IRA withdrawals for house  (Read 2425 times)


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IRA withdrawals for house
« on: June 30, 2014, 09:50:51 PM »
I'm buying a house and need to come up with a down payment. This was unexpected, so I've been channelling all my money into either paying off debts, or IRA/401k. I've read that I can pull money out of the IRA account as long as I put it back in 60 days. Is this true? I have strong cash flow and can easily do that. I need to close in about 2 weeks, and this is the only place I can think of to get cash (can't really pull money out of 401k or mortgage once it's paid...)

I should mention that gift funds are also an option. If nothing else, I can delay for a month and just come up with the downpayment through savings... But I'd rather move sooner than later to start collecting rent for my current place.

I have a betterment account in case that matters.
« Last Edit: June 30, 2014, 09:57:05 PM by genesismachine »

Cheddar Stacker

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Re: IRA withdrawals for house
« Reply #1 on: June 30, 2014, 10:24:11 PM »
I'm not aware of a 60 day ira loan, but maybe its possible. If it a first time home purchase I believe you can take a penalty free withdrawal from an ira, but you would still have to pay the tax.

Based on the facts you presented I think you should take a 401k loan. Limited to the lesser of $50k or50% of account balance. Must repay or face penalties & tax if you lose job. Repayment is with post-tax earnings. Not for everyone but you said you can repay quickly so it could fit well for you.


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Re: IRA withdrawals for house
« Reply #2 on: June 30, 2014, 11:26:46 PM »
The 60 day IRA is a maneuver to try and transfer IRA funds from one custodian to another. It is not a loan per se. My understanding was that they were going to close this loophole and required a direct custodian to custodian transfer.

You are closing in two weeks and are scrambling for funds at this late stage. A 401k loan is best as Cheddar Stacker suggested. Why the hurry? Don't you have emergency funds? Roth IRA contributions? Also how much amount are we talking about.


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Re: IRA withdrawals for house
« Reply #3 on: July 01, 2014, 06:04:34 AM »
If you can save the money in a month then wait a month. Why go through all that hoopla?


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