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New Member
posted Jun 1, 2019 5:52:39 AM

Can I withdrawl funds early from my Roth IRA without fees and taxes if funding a first time home purchase? If so how much?

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1 Best answer
New Member
Jun 1, 2019 5:52:41 AM

Yes, if you meet these following conditions as a first-time home buyer:

  • The account has been open for five years.
  • You withdraw $10,000 or less to purchase a home.
  • The funds are used directly toward a home acquisition (down payment, closing costs, etc.)

If the above criteria are met, you can withdraw your entire account up to $10,000.  The $10,000 is a lifetime limit, and if the rules are met, the withdrawal will count as a qualified distribution and there will be no income tax owed or early withdrawal fees.

6 Replies
New Member
Jun 1, 2019 5:52:41 AM

Yes, if you meet these following conditions as a first-time home buyer:

  • The account has been open for five years.
  • You withdraw $10,000 or less to purchase a home.
  • The funds are used directly toward a home acquisition (down payment, closing costs, etc.)

If the above criteria are met, you can withdraw your entire account up to $10,000.  The $10,000 is a lifetime limit, and if the rules are met, the withdrawal will count as a qualified distribution and there will be no income tax owed or early withdrawal fees.

New Member
Jun 1, 2019 5:52:43 AM

What about contributions. Can those be taken tax/fee free?

New Member
Jun 1, 2019 5:52:45 AM

Contributions can be taken tax and penalty free, but earnings would incur tax and penalties.

Level 2
Feb 2, 2020 10:08:08 AM

Everything I found online is that this is $20,000 for couples, but that does not seem to be an option in turbo tax.

What can I do?

Level 15
Feb 2, 2020 10:12:08 AM

Only $10,000 from your IRA and $10,000 from your spouse's IRA can be used penalty free for a first time home purchase.  Not $20,000 from one IRA if you are married.

Level 2
Feb 2, 2020 10:14:34 AM

Ah - I clearly misunderstood this, thank you for clarifying and for your quick reply!