Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
marutpawla
New Member

What are the tax consequence if I take out money for my first home from a traditional IRA?

 
1 Reply
MinhT
Expert Alumni

What are the tax consequence if I take out money for my first home from a traditional IRA?

If you withdraw from your IRA to buy your first home (and assuming that you are under age 59 1/2). the whole amount of the distribution is subject to income tax. Also, you will have to pay an early withdrawal penalty of 10% on the amount less up to $10,000 (which is the exception to the penalty when you buy your first home).

Please read this TurboTax FAQ:

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Privacy Settings
v