Solved: Hi! Is there a tax exemption for early retirement withdrawal (10-99-R) if we used it to buy a house?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Hi! Is there a tax exemption for early retirement withdrawal (10-99-R) if we used it to buy a house?

 
1 Best answer

Accepted Solutions
Level 4

Hi! Is there a tax exemption for early retirement withdrawal (10-99-R) if we used it to buy a house?

Yes, there is an exception to the Early 10% Withdrawal Penalty for withdrawal's from IRA accounts for First-Time Home Purchases (no home ownership in prior two years).  This exception has a lifetime limitation of $10,000 per taxpayer.   You will need to file Form 5329 to take the exception.  

Keep in mind, even f you meet the qualifications to waive the 10% Penalty, the withdrawal is still included in your taxable income for the year.

Check out the TurboTax FAQ below for more details:

https://ttlc.intuit.com/replies/3301632

View solution in original post

1 Reply
Level 4

Hi! Is there a tax exemption for early retirement withdrawal (10-99-R) if we used it to buy a house?

Yes, there is an exception to the Early 10% Withdrawal Penalty for withdrawal's from IRA accounts for First-Time Home Purchases (no home ownership in prior two years).  This exception has a lifetime limitation of $10,000 per taxpayer.   You will need to file Form 5329 to take the exception.  

Keep in mind, even f you meet the qualifications to waive the 10% Penalty, the withdrawal is still included in your taxable income for the year.

Check out the TurboTax FAQ below for more details:

https://ttlc.intuit.com/replies/3301632

View solution in original post

Dynamic Ads
v
Privacy Settings