Posted on: 18th Jun, 2011 12:26 am
I'm a first time buyer along with my wife and both of us are planning to buy a property. We both have IRA retirement funds and now we're planning to use it for down payment. Is it is a good option to use the IRS funds for down payment? Also can you let me know what is meant by qualified acquisition costs?
Hi Theodore!
Welcome to forums!
As far as I know, as per the IRS, if both the husband and wife are first-time home buyers, they each will be able to withdraw up to $10,000 from their IRA funds for qualified acquisition costs penalty-free for a first home. Nevertheless, it will be a better option if you could contact a tax adviser and take his opinion in this regard. Qualified acquisition costs include the costs of buying, building, or rebuilding a home. It also includes any reasonable settlement, financing, or closing costs.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, as per the IRS, if both the husband and wife are first-time home buyers, they each will be able to withdraw up to $10,000 from their IRA funds for qualified acquisition costs penalty-free for a first home. Nevertheless, it will be a better option if you could contact a tax adviser and take his opinion in this regard. Qualified acquisition costs include the costs of buying, building, or rebuilding a home. It also includes any reasonable settlement, financing, or closing costs.
Feel free to ask if you've further queries.
Sussane