topic Can any of the withdrawal from traditional IRA used specifically to purchase primary residence be used to reduce the taxes that I owe on the withdrawals? in Retirement tax questions

Can any of the withdrawal from traditional IRA used specifically to purchase primary residence be used to reduce the taxes that I owe on the withdrawals?

bannertavishsara — Thu, 06 Jun 2019 15:52:23 GMT

I am 69 and this is not my first home purchase.

No. A first home only applies to the additional 10% earl...

macuser_22 — Thu, 06 Jun 2019 15:52:26 GMT

No. A first home only applies to the additional 10% early distribution penalty that does not apply to you anyway since you are older than 59 1/2. That has nothing to do with the normal tax.

Unfortunately, the withdrawal from your Traditional IRA i...

MinhT — Thu, 06 Jun 2019 15:52:28 GMT

Unfortunately, the withdrawal from your Traditional IRA is taxable and there is no way to reduce taxes. As you are over 59 1/2, there is no early withdrawal penalty.

There is only an exception to the early withdrawal penalty (but not tax) for qualified first-time home buyers for withdrawals up to $10,000.