Using IRA for first time buyers- question - Posted by WLM


#1

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.

Bill Exeter
Security Trust Company


#2

Using IRA for first time buyers- question - Posted by WLM

Posted by WLM on November 04, 1998 at 21:48:52:

I understand one can use up to $10,000 from one’s IRA to purchase a “first time residence” (or if you haven’t owned a residence for past 2 years)… and the withdrawal is without penalty.

IF it turns out you CAN’T buy within 60 days of withdrawal, you can return the money to the IRA, and no penalty is incurred.

Is this True? What if you withdraw the cash, use it for something else short term, then put it back within 60 days??


#3

Re: Using IRA for first time buyers- question - Posted by WLM

Posted by WLM on November 07, 1998 at 12:04:51:

I see- I was under the impression that the rule concerning withdrawal from an IRA for 60 days… and re-depositing it within that time without penalty or taxation… had been repealed. I thought the first time home buyer was an exception to that rule.

In any event, income tax is due on the withdrawal??

Thanks