Form 5329

kmccreary — Fri, 12 Jul 2019 19:43:26 GMT

My question is...we are trying to buy a house and would like to use $10,000 of my Simple IRA $. I am under the impression that i can use this money tax free if we have not purchased a house in the last two years. It has been 4 years since i have done this. Does anyone know this answer?

Re: Form 5329

macuser_22 — Fri, 12 Jul 2019 20:20:01 GMT

@kmccreary wrote:
I am under the impression that i can use this money tax free if we have not purchased a house in the last two years.

Not tax free. Up to $10,000 can be distributed without the additional early distribution penalty but the normal tax on the distribution still applies.

See IRS pub 590B for details. (The same rules for a Traditional IRA apply to a SIMPLE IRA for first home).

https://www.irs.gov/publications/p590b#en_US_2018_publink1000230922

topic Form 5329 in Retirement tax questions

Form 5329

Re: Form 5329