topic Re: IRA in Retirement tax questions

IRA

crawfish13 — Wed, 18 Mar 2026 16:35:44 GMT

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

Re: IRA

xmasbaby0 — Wed, 18 Mar 2026 16:38:15 GMT

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.

Re: IRA

DoninGA — Wed, 18 Mar 2026 16:39:09 GMT

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.

Re: IRA

MinhT1 — Wed, 18 Mar 2026 16:40:16 GMT

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Cashing out your IRA before age 59 1/2 will incur income tax and a 10% early withdrawal penalty on the amount withdrawn.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