Ira withdrawal for first time homebuyer
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jabrownin
New Member

Ira withdrawal for first time homebuyer

I'm doing a withdrawal as a first time homebuyer and I am under the impression that I will not be charged penalties and fees since it's being used towards a home. However my account is suggesting a 10% tax withholding. If I choose to do this and I'm not going to get taxed, do I get it back in my end of year refund?

4 Replies
DoninGA
Level 15

Ira withdrawal for first time homebuyer

For a first time homebuyer you can withdraw from an IRA up to $10,000 and not incur a 10% early distribution penalty.  However, the amount withdrawn is still taxable income to be reported on your tax return.

The recommendation for tax withholding is good advice.

jabrownin
New Member

Ira withdrawal for first time homebuyer

Thank you! And I will be taxed at my regular income level, correct?

DoninGA
Level 15

Ira withdrawal for first time homebuyer


@jabrownin wrote:

Thank you! And I will be taxed at my regular income level, correct?


Correct

VolvoGirl
Level 15

Ira withdrawal for first time homebuyer

But be careful the withdrawal is added to all your income and might push you into a higher tax bracket.

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