Hi,
Here is an article regarding your questions:
https://blog.turbotax.intuit.com/income-and-investments/what-is-the-ira-withdrawal-age-53977/
Once you’ve hit the age of 59.5, you may start to take distributions in your Traditional IRA without the 10% penalty, but you will still be taxed, as these funds went into your account with pre-tax dollars.
Roth IRAs work a little differently than traditional IRAs, as they provide a little more leeway for the account owner. Unlike the traditional IRA, money contributed to your Roth IRA is post-tax, meaning that it is taxed before it goes into the account.
You can take a Roth IRA distribution on your contributions at any time without penalty or taxes. If you wish to withdraw your Roth IRA earnings, however, there are certain circumstances where there are no taxes or penalties:
- You must be age 59.5 or older, and
- Your Roth IRA account must be active for five years or more
Here is an article regarding avoiding tax on sale of a home:
https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t...
- If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free.
- If you are married and file a joint return, the tax-free amount doubles to $500,000.
The law lets you "exclude" this profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)
- You can use this exclusion every time you sell a primary residence, as long as you owned and lived in it for two of the five years leading up to the sale, and haven't claimed the exclusion on another home in the last two years.
- If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D.
In addition, if you have enough deductions to itemize on schedule A, you can use mortgage interest and real estate taxes paid on your home to be used as deductions to reduce your adjusted gross income.
Thank you,
John
CPA
