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hdmurph50
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Can i take out my traditional ira in the amount of $217,000 to buy a house? If so how much tax would i pay?

 
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3 Replies

Can i take out my traditional ira in the amount of $217,000 to buy a house? If so how much tax would i pay?

Well, if you are under the age of 59 1/2 and the taxable amount withdrawn is $217,000 you will be paying a 10% early withdrawal penalty on your tax return of $20,700 since the first $10,000 would be penalty free. [Edit] If you are a first time homebuyer.

The taxable amount of the withdrawal would be entered on your tax return as ordinary income and added to your other income.  Depending on your filing status, other income, deductions or credits, the withdrawal could put you in one of the higher tax brackets of 24%, 32% or 35%.

dmertz
Level 15

Can i take out my traditional ira in the amount of $217,000 to buy a house? If so how much tax would i pay?

If you are under age 59½, the first $10,000 would be free of penalty only if meet the requirement of being a first-time home-buyer.

Can i take out my traditional ira in the amount of $217,000 to buy a house? If so how much tax would i pay?

Remember state taxes as well.

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