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Money Talk > Taxes

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bigred
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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
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Jade
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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
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Jaszbo
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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
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