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g510432
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If we withdraw the down payment for a second home from our IRA this summer, will we be subject to underpayment penalty for 2021 taxes?

 
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If we withdraw the down payment for a second home from our IRA this summer, will we be subject to underpayment penalty for 2021 taxes?

The withdrawal will be subjected to tax at your normal rate. If a premature withdrawal,  you would also pay a 10% penalty. To avoid an underpayment penalty you should withhold for the year at least as much as your prior year’s  tax liability. 

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