Form 5329

My question is...we are trying to buy a house and would like to use $10,000 of my Simple IRA $. I am under the impression that i can use this money tax free if we have not purchased a house in the last two years. It has been 4 years since i have done this. Does anyone know this answer?

975

Level 15

Jul 12, 2019 1:20:01 PM

@kmccreary wrote:
I am under the impression that i can use this money tax free if we have not purchased a house in the last two years.

Not tax free. Up to $10,000 can be distributed without the additional early distribution penalty but the normal tax on the distribution still applies.

See IRS pub 590B for details. (The same rules for a Traditional IRA apply to a SIMPLE IRA for first home).

https://www.irs.gov/publications/p590b#en_US_2018_publink1000230922

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Form 5329