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Level 1

Question

IRA

Forum|Forum|3 months ago
March 18, 2026
3 replies
4 views

If I cash out IRA before 59 1/2 years old and use to pay off my house, can I deduct this?

Level 15

Sorry-no. If you take money from your IRA before you are 59 1/2, you will pay a 10% early withdrawal penalty plus ordinary income tax. There is an exception for using IRA money for a down payment, but not for paying off an existing mortgage.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Level 15

No. Payoff of a mortgage is not deductible or reported on tax return

The payoff of the mortgage loan is not an exception to the 10% early distribution penalty from the IRA account.

Level 15

No.

Cashing out your IRA before age 59 1/2 will incur income tax and a 10% early withdrawal penalty on the amount withdrawn.

Paying off your house is not an exception to the early withdrawal penalty.

See this TurboTax Help article.

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