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New Member

Roth IRA Distribution for first time home buyers question

I read that one may withdraw $10K with no penalty if used toward buying a house for the first time. How do I apply that into turbotax? Thank you.

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Level 15

Roth IRA Distribution for first time home buyers question

The first 10K of what?  And for what purpose?
**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.**
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New Member

Roth IRA Distribution for first time home buyers question

sorry, somehow the original question and details were missing.
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New Member

Roth IRA Distribution for first time home buyers question

No. That's not correct. There is a penalty exception for first time home buyers for IRA distributions up to $10,000.

Here are the other exceptions:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

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New Member

Roth IRA Distribution for first time home buyers question

sorry, somehow the original question and details were missing. I have revised the question
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New Member

Roth IRA Distribution for first time home buyers question

In that case, you're correct, although a Roth Distribution may not be the most financially sound since it's mostly tax-free with taxes and penalties on only the earnings. If you have the possibility, a traditional IRA may be a better deal. Hope that helps.