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Retirement tax questions
Since the distribution is from an inherited traditional IRA, meaning that there is no early-distribution penalty, the first-home penalty exception does not apply. You can use the money without penalty for whatever you desire. The taxable amount of the distribution is the same no matter what you do with the money (except in the case where you are over age 70½ and you make a qualified charitable distribution from the inherited IRA).
June 7, 2019
3:25 PM