Can any of the withdrawal from traditional IRA used specifically to purchase primary residence be used to reduce the taxes that I owe on the withdrawals?

bannertavishsara · ‎June 6, 2019

I am 69 and this is not my first home purchase.

macuser_22 · ‎June 6, 2019

No. A first home only applies to the additional 10% early distribution penalty that does not apply to you anyway since you are older than 59 1/2. That has nothing to do with the normal tax.

**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.**

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macuser_22 · ‎June 6, 2019

No. A first home only applies to the additional 10% early distribution penalty that does not apply to you anyway since you are older than 59 1/2. That has nothing to do with the normal tax.

**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.**

MinhT · ‎June 6, 2019

Unfortunately, the withdrawal from your Traditional IRA is taxable and there is no way to reduce taxes. As you are over 59 1/2, there is no early withdrawal penalty.

There is only an exception to the early withdrawal penalty (but not tax) for qualified first-time home buyers for withdrawals up to $10,000.

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Can any of the withdrawal from traditional IRA used specifically to purchase primary residence be used to reduce the taxes that I owe on the withdrawals?