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drdominici
New Member

At 61 -1st time home buyer. Like to use a 20 yr old IRA as $down. Will normal tax bracket % apply on the IRA (as income) after the 1st 10K (1st time buyers' allowance)?

 
4 Replies
macuser_22
Level 15

At 61 -1st time home buyer. Like to use a 20 yr old IRA as $down. Will normal tax bracket % apply on the IRA (as income) after the 1st 10K (1st time buyers' allowance)?

You misunderstand.   The first time home buyer exemptions is only for the 10% early distribution penalty, not the normal tax.   The penalty only applies if you are  under age 59 1/2 so at 61 there is no penalty reguardless of what you do with the money.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
VolvoGirl
Level 15

At 61 -1st time home buyer. Like to use a 20 yr old IRA as $down. Will normal tax bracket % apply on the IRA (as income) after the 1st 10K (1st time buyers' allowance)?

The first 10,000 is only for a penalty if you were under 59 1/2 and have a 10% Early Withdrawal Penalty.   You are older so no penalty.  Either way the whole distribution is taxable (over any basis you might have) and may push you into a higher tax bracket.  So be careful.   

drdominici
New Member

At 61 -1st time home buyer. Like to use a 20 yr old IRA as $down. Will normal tax bracket % apply on the IRA (as income) after the 1st 10K (1st time buyers' allowance)?

Thank you! 

drdominici
New Member

At 61 -1st time home buyer. Like to use a 20 yr old IRA as $down. Will normal tax bracket % apply on the IRA (as income) after the 1st 10K (1st time buyers' allowance)?

Thank you

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