Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    


Reply to topic
Money Talk > Taxes

Author Thread
First Time Poster

Cash: $ 0.25

Posts: 1
Joined: 27 Feb 2006

IRA's  Reply with quote  

I have a Roth IRA that is only about a year old. If am going to become a first-time-homeowner can I use this IRA for a down payment. I read somewhere that you have to have the Roth for 5 years before you can take out any distributions.

Any help will be appreciated.
Post Mon Feb 27, 2006 5:19 pm
 View user's profile Send private message
First Time Poster

Cash: $ 0.20

Posts: 1
Joined: 27 Feb 2006

 Reply with quote  

Withdrawals:Tax-free and penalty-free withdrawals of earnings plus contributions after five years if you are 59 1/2 or in the following circumstances: death, disability or for first-time home purchase up to $10,000. Penalty-free, but not tax-free withdrawals permitted before age 59 1/2 for higher education expenses.
Post Mon Feb 27, 2006 9:15 pm
 View user's profile Send private message
Preferred Member

Cash: $ 35.90

Posts: 177
Joined: 03 Jan 2006

 Reply with quote  

Yes, you can take out your Contributions anytime, I wouldn't recommend it, but you can.

I took this from vanguard's web site:

Taking a distribution
* Withdraw your contributions at any time penalty-free.
* Withdraw earnings beginning at age 59 penalty-free; there are exceptions that allow early withdrawals without penalty.
* Income tax on earnings will apply if you've held the account for less than five years.
* There are no required minimum distributions (RMDs) for a Roth IRA.
* Arrange for withdrawals online, by mail, or by phone.
Post Tue Feb 28, 2006 1:07 am
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      

Money Talk © 2003-2018