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Level 3

Form 5329

My question is...we are trying to buy a house and would like to use $10,000 of my Simple IRA $.  I am under the impression that i can use this money tax free if we have not purchased a house in the last two years.  It has been 4 years since i have done this.  Does anyone know this answer?

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Level 20

Form 5329


@kmccreary wrote:

 I am under the impression that i can use this money tax free if we have not purchased a house in the last two years. 


Not tax free.    Up to $10,000 can be distributed without the additional early distribution penalty but the  normal tax on the distribution still applies.

 

See IRS pub 590B for details.  (The same rules for a Traditional IRA apply to a SIMPLE IRA for first home).

https://www.irs.gov/publications/p590b#en_US_2018_publink1000230922