Hi,
Investment retirement accounts (IRAs) are supposed to be long-term investments. Because they're intended to help you save for retirement, the Internal Revenue Service (IRS) doesn't want you to withdraw any funds from them before you turn 59½. And to enforce that, you'll normally owe a 10% penalty on the amount you withdraw early, along with income taxes.
Still, every rule has its exceptions. It's possible to use funds from an IRA, penalty-free, to buy a house, even if you aren’t six months away from your 60th birthday.
You can itemize your deductions with using your new residence. Interest, property taxes and any points paid on the new mortgage. Points on the purchase of a residence new to you, can be deducted in full on the year of the acquisition.
Mel
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