I am buying a home & would like to use a part of my Roth IRA & part of my Regular IRA for about half of the down payment. Can I withdraw $10K from each w/o penalty?

[mike-epp]

I had seem similar situations already asked, but not exactly sure what the answer is.

It seems I can withdraw $10K from my traditional IRA without penalty. Can I also withdraw $10K more or less from my Roth IRA without penalty?

Thank you,

Mike

[Opus 17]

The $10,000 limit applies to all your IRAs for a single qualifying "first time" purchase.  $10,000 is your max, not $10,000 per account.

Then,

Traditional IRA: You can withdraw up to $10,000 to buy or build your "first" home.  You will owe regular income tax but not the penalty.

Roth: You can withdraw up to the amount of your original after-tax contributions at any time, for any reason, without penalty or tax.  If the Roth has been open less than 5 years, you will owe income tax and the penalty on any withdrawal of earnings and the first time home buyer rule doesn't apply.  If the Roth has been opened more than 5 years, you can withdraw any amount of original principle contribution plus up to $10,000 of earnings for the first time homebuyer rule and pay income tax on the earnings, but not the penalty.

So you can get more than $10,000 total if you withdraw Roth contributions.  But your combined limit for Roth earning plus all money from a traditional IRA is $10,000.

[Opus 17]

Also, "first time" homebuyer means you have not had an ownership interest in the home you lived in for at least 2 years prior to the closing date of the new purchase.  You can't use IRA money for any home, it has to be a qualifying "first time" home purchase.

[Critter]

If you are married ... each spouse can take up to $10K each from a IRA