I used Rollover IRA to pay off the mortgage, I'm 61 so far I have to pay 20% taxes can I explain I used the money for a home?

Forum|Forum|4 years ago
February 16, 2022
2 replies
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dmertz

Level 15

Such an explanation would serve no purpose. The distribution from the IRA is taxable no matter what you did with the money.

Hal_Al

Level 15

After age 59.5, it's irrelevant what you did with the money*. Buying a house is not a tax exception, it's only a penalty exception. The 10% early distribution penalty only applies to people under 59.5.

*Except rollovers to another plan. After age 70.5, there is a charity contribution exclusion allowed, when done properly.

I used Rollover IRA to pay off the mortgage, I'm 61 so far I have to pay 20% taxes can I explain I used the money for a home?

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