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New Member
posted May 31, 2019 5:51:29 PM

Can I withdraw from my IRA after I have closed on a house and not get the extra 10% penalty?

I have closed on a house already but want to take a first time home buyer deduction from my IRA. Is it too late to do it? Do I have 120 days before and after the closing?

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1 Best answer
Level 15
May 31, 2019 5:51:31 PM

It's too late. You cannot avoid the 10% penalty after you have closed on the house. You do not have 120 days before or after the closing. You have to use the money to buy the house within 120 days after (but not before) you receive the distribution from the IRA. Since you have already paid for the house, there is no way that you can meet that requirement.

4 Replies
Level 15
May 31, 2019 5:51:31 PM

It's too late. You cannot avoid the 10% penalty after you have closed on the house. You do not have 120 days before or after the closing. You have to use the money to buy the house within 120 days after (but not before) you receive the distribution from the IRA. Since you have already paid for the house, there is no way that you can meet that requirement.

Returning Member
Nov 28, 2019 9:33:23 AM

What about withdrawing after I have signed the purchase contract but before the closing date? Will that still qualify?

Returning Member
Nov 28, 2019 9:34:45 AM

What about withdrawing after I have signed the purchase contract but before the closing date? Will that still qualify?

Level 15
Nov 28, 2019 9:41:15 AM

This is a forum not a live chat room ... you must wait for someone to answer your post.

 

The rule is 120 days before the closing ... not the contract date.