Posted by William L. Exeter on November 06, 1998 at 11:31:54:
You are correct regarding the $10,000 first time home buyers exemption which will be taxable if distributed from a Traditional IRA, but will not be subject to any penalties. And, you can rollover the funds back into an IRA if you can not use the funds for the first time home purchase which will avoid taxes and penalties completely. You can use the funds distributed from any IRA for any purpose during the 60 day period, provided they are rolled back into an IRA be the end of the 60th day. As long as the funds are rolled over within the 60 day period you will not be subject to any taxes or penalties. You are allowed one rollover per 12 month period. Any profits or losses incurred during the 60 day period are not allowed within the IRA - but would be reported on your personal tax return. Please feel free to email me if you have any further questions.
Security Trust Company