Roth IRA Early Withdrawal to go to purchase of home. What documentation will I need to prove the withdrawal went to the home purchase?

[adriennecprince]

I have a Roth IRA and want to take out $5K to help with closing costs on the purchase of my first home. What receipts or documentation do I need to prove that $5K withdrawal went to my home purchase?

[dmertz]

Note that your original contributions to the Roth IRA can be distributed at any time tax and penalty free without needing to apply the first home-purchase exception.  You would only use the first home-purchase exception if you are withdrawing earnings from the Roth IRA or are withdrawing an amount attributable to a taxable Roth conversion before the 5-year holding period for the corresponding conversion has been completed.

[Critter · Accepted solution]

To qualify for treatment as a first-time homebuyer distribution, the distribution must meet all the following requirements. So keep the closing papers showing that you paid at least that much in closing costs & that it was done timely. 

1. It must be used to pay qualified acquisition costs (defined next) before the close of the 120th day after the day you received it. 

2. It must be used to pay qualified acquisition costs for the main home of a first-time homebuyer (defined below) who is any of the following. a. Yourself. b. Your spouse. c. Your or your spouse's child. d. Your or your spouse's grandchild. e. Your or your spouse's parent or other ancestor.