Posted on: 03rd Dec, 2009 01:31 pm
My fiance and I are planning to purchase a home, however need to utilize our retirement for the down payment. We both have 457 plans and are in the process of rolling them into a traditional IRA. I understand that spouses may may withdraw 10k each for a total of 20k without penalty as long as they are both first time homebuyers? Two questions:
1. Since she only has 1k to rollover and I have 25k to rollover, if we utilize the same IRA account, can we withdraw the 20k (10k each)?
2. We are planning to get married in 2010, since the regulations says spouses may withdraw. Will we meet this requirement if we withdraw the funds in 2010 as the next years taxes will be filed as such?
1. Since she only has 1k to rollover and I have 25k to rollover, if we utilize the same IRA account, can we withdraw the 20k (10k each)?
2. We are planning to get married in 2010, since the regulations says spouses may withdraw. Will we meet this requirement if we withdraw the funds in 2010 as the next years taxes will be filed as such?
Hi,
You are allowed to withdraw a maximum of $10k from your traditional IRA as first time buyers, without incurring the 10% penalty for early withdrawal. Married couples ca jointly withdraw $20k as first time buyers. She may have only 1k to rollover and you $25k to rollover, but once you get married and have the same IRA account, you and your wife should be able to withdraw $20k in total. If you plan to get married in 2010, you can withdraw the funds in that year or any of the successive years, but only once in your lifetime.
You are allowed to withdraw a maximum of $10k from your traditional IRA as first time buyers, without incurring the 10% penalty for early withdrawal. Married couples ca jointly withdraw $20k as first time buyers. She may have only 1k to rollover and you $25k to rollover, but once you get married and have the same IRA account, you and your wife should be able to withdraw $20k in total. If you plan to get married in 2010, you can withdraw the funds in that year or any of the successive years, but only once in your lifetime.
If you took the money out one day and put it back in the next day, would anything actually change on the balance? We are possibly looking to do this for a downpayment but we'd repay it and don't want to lose anything we've accumulated. thanks!