Can I use any of my IRA funds for a down payment?
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Can I use any of my IRA funds for a down payment?

posted in: Blog, Real Estate | 0

YES! According to the 1997 Taxpayer Relief Act, as a first-time homebuyer, you can withdraw up to $10,000 (if your married a total of $20,000) penalty-free from your individual retirement account (IRA) for a downpayment to purchase a house.  You will, though still need to pay income tax on the amount drawn.  You can check out the official rules at www.irs.gov.  Just note that $10,000 is a lifetime limit and the money must be used within 120 days of the date you receive it.   Also the first-time homebuyer using the funds can be you, your child, grandchild, parent or spouse.  Also if you are buying the home as a couple, BOTH parties must qualify as first-time homebuyers.  The law, though, defines a first-time homebuyer as someone who hasnt owned a house for the past two years.

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