Posted on: 09th Aug, 2009 09:01 am
Can one use IRA retirement funds for a downpayment on a house?
will it be free from penalty?
can we avoid interest charges by withdrawal?
will it be free from penalty?
can we avoid interest charges by withdrawal?
Hey appletongary,
You can definitely use the IRA funds for down-payment however withdrawing funds before 59 and ½ years of age from your IRA would result into a penalty. There are certain situations where you will not have to pay any kind of penalty. You may withdraw funds from your IRA for up to 60 days. This is tax and penalty-free if you return the funds to the IRA by the end of the 60-day period. This is considered as a nontaxable rollover.
You can definitely use the IRA funds for down-payment however withdrawing funds before 59 and ½ years of age from your IRA would result into a penalty. There are certain situations where you will not have to pay any kind of penalty. You may withdraw funds from your IRA for up to 60 days. This is tax and penalty-free if you return the funds to the IRA by the end of the 60-day period. This is considered as a nontaxable rollover.