- Use the Roth IRA contributions as a down payment. If you have a Roth IRA, you can use anything you want for your original contribution without obligation to pay any tax or penalty. It not required being a first home buyer.
- Removes up to 10 percent of income Roth IRA without penalty.
- Check how long have you had open the Roth IRA. If you had open at least 5 years will not pay income taxes when they retire.
Try to make the purchase of your home as soon as you can in the year. If the mortgage rate you pay during the year is greater, you can deduct as much of that tax year. Because taxes on your IRA withdrawal will be taxed, obtaining higher mortgage interest deduction will help to compensate for such distribution.
In addition, the withdrawal of $ 10,000 can be used to buy a home for your spouse, child, grandchild, parent or grandparent.
Work with a financial advisor or tax specialist qualified before withdrawing money from your retirement plan or making a major purchase such as a house.
- If the purchase of your home is not concretized, be sure to return the money to your IRA retirement account within 120 days or pay taxes and penalties.