1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    This is a great question!!! The answer is yes - Roth IRA rules allow for first time home buyers to be able to withdraw up to $10,000 tax free to help purchase their home. This is true regardless of your age, the 59 1/2 age requirement is waived, and so is the five year rule (your account must be opened for a minimum of five years to avoid taxes and penalties). I am a big fan of Roth's, and this is one of the reasons why. Go see your plan administrator, and happy house hunting! Thanks for asking!
    Answered on April 1, 2015
  2. 1554 POINTS
    Marcy Tooker
    Life & Health Insurance Agent, The Tooker Agency, Riverhead NY
    One of the great advantages to a Roth IRA is you can withdraw your basis at any time without paying any taxes or penalties. You can use this money for any purpose, including a home purchase.

    When you make a withdrawal from your Roth it is considered that your contributions come out first, then any conversion funds and finally earnings.

    Here's an example: Let's assume you have contributed a total of $20,000 into your Roth IRA and over time your account has grown to $40,000. You are buying your first home and want to withdraw $30,000. The first $20,000 will not be taxed as it reflects your contributions. As a first time home buyer the next $10,000 will not be subject to the 10% early withdrawal penalty and will not be taxable as long as you've had your Roth for over 5 years.

    This type of flexibility is what makes the Roth IRA attractive for many investors.
    Answered on April 14, 2015
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