Roth IRS

Forum|Forum|3 years ago
July 27, 2022
1 reply
1 view

What is the penalty of withdrawing early from a Roth IRA account to help purchase a house?

LaceyL

Employee Tax Expert

Hi! Thanks for asking!

You can use the first time home buyer exception to withdraw up to $10,000 of earnings without penalty. If the Roth IRA has been opened at least 5 years, the withdrawal is also exempt from regular income tax. Withdrawing more than $10,000 of earnings will result in regular income tax plus a 10% penalty, unless you are over age 59-1/2.

Here is a link for how to enter it into TurboTax when the time comes: https://ttlc.intuit.com/community/retirement/discussion/i-m-taking-an-early-distribution-from-my-roth-ira-for-a-1st-time-home-purchase-i-believe-this-is-an/00/714885

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