topic I used Rollover IRA to pay off the mortgage, I'm 61 so far I have to pay 20% taxes can I explain I used the money for a home? in Retirement tax questions

I used Rollover IRA to pay off the mortgage, I'm 61 so far I have to pay 20% taxes can I explain I used the money for a home?

caro22 — Mon, 09 Mar 2026 06:00:37 GMT

Re: I used Rollover IRA to pay off the mortgage, I'm 61 so far I have to pay 20% taxes can I explain I used the money for a home?

dmertz — Wed, 16 Feb 2022 12:33:54 GMT

Such an explanation would serve no purpose. The distribution from the IRA is taxable no matter what you did with the money.

Re: I used Rollover IRA to pay off the mortgage, I'm 61 so far I have to pay 20% taxes can I explain I used the money for a home?

Hal_Al — Wed, 16 Feb 2022 12:42:34 GMT

After age 59.5, it's irrelevant what you did with the money*. Buying a house is not a tax exception, it's only a penalty exception. The 10% early distribution penalty only applies to people under 59.5.

*Except rollovers to another plan. After age 70.5, there is a charity contribution exclusion allowed, when done properly.