Using your IRA for First time home purchase.

[Bilgefisher]

First home. Even if you are under age 59½, you do not have to pay the 10% additional tax on up to $10,000 of distributions you receive to buy, build, or rebuild a first home. To qualify for treatment as a first-time homebuyer distribution, the distribution must meet all the following requirements.

1. It must be used to pay qualified acquisition costs (defined later) before the close of the 120th day after the day you received it.
2. It must be used to pay qualified acquisition costs for the main home of a first-time homebuyer (defined later) who is any of the following.
   1. Yourself.
   2. Your spouse.
   3. Your or your spouse's child.
   4. Your or your spouse's grandchild.
   5. Your or your spouse's parent or other ancestor.
3. When added to all your prior qualified first-time homebuyer distributions, if any, total qualifying distributions cannot be more than $10,000.

If both you and your spouse are first-time homebuyers (defined later), each of you can receive distributions up to $10,000 for a first home without having to pay the 10% additional tax. Qualified acquisition costs. Qualified acquisition costs include the following items.

• Costs of buying, building, or rebuilding a home.
• Any usual or reasonable settlement, financing, or other closing costs.

First-time homebuyer. Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement.
Date of acquisition. The date of acquisition is the date that:

• You enter into a binding contract to buy the main home for which the distribution is being used, or
• The building or rebuilding of the main home for which the distribution is being used begins.

This is directly from the IRS website under Taxable Distributions

I plan on using a portion of my Roth IRA for a down payment. I don't have to use my Roth, have sufficient bank funds ,and easily qualify for 0% down through a VA loan. But, the longer I am on this forum, the more I realize I am not fully utilizing my money by keeping it within a retirement fund. If I use the 10k towards my down payment, I have effectively withdrawn 10k from my roth without the 10% penalty. (From what I understand, I can actually withdraw my entire contribution and up to 10k in roth earnings) While it would be tied up in my home, this money can still be used in the future.

So, I thought I would ask. What are your opinions of early withdrawal of retirement funds towards your goals to get out of the rat race?

 

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[AroundTheWorld]

O vjopl ov ot hsiev vjev zua esi duptofisoph emm zuas ettivt epf jux vu qav vjin vu citv ati....

Ecuav 5 ziest ehu, xi detjif op e sivosinipv edduapv, epf xi jewi nefi jahi sivaspt topdi vjip. Ov xet ximm xusvj ov gus at.

Juxiwis, ONU, qammoph nupiz uav ug sivosinipv gus vji qasdjeti ug e fuufef ot tunivjoph imti ipvosimz... (zit, iwip e juati).

Jisi ot epuvjis vjuahjv...

Zua duamf dupwisv zuas OSE vu e timg fosidvif OSE epf qasdjeti siem itvevi opwitvnipvt / jesf ettivt xovj vji nupiz zua jewi vjisi.... epf zua duamf tvomm veli efwepvehi ug vji WE muep.

 

[Edge]

[/list]Cav, vji muphis O en up vjot gusan, vji nusi O siemobi O en puv gammz avomoboph nz nupiz cz liiqoph ov xovjop e sivosinipv gapf.

O nohjv ci upi ug vji qutvist vjev opfodevif zua xisip'v avomoboph zuas nupiz og ov xet op e sivosinipv gapf, tu O xepvif vu dmesogz. O en dsovodem ug nz dunqepz tquptusif 401l qmep cideati ov ot monovif opwitvnipv. Puv vji deti xovj vji OSE. Zua esi op dupvsum ug vji OSE, hu vji timg-fosidvif suavi epf qmez cz vji samit.

Topdi cz zuas uxp efnottoup, zua fup'v piif vu hu vu vji OSE vu hiv vji gapft, O xuamfp'v. Og zua jewi e 401l vjev zua dep cussux gsun, vjev nohjv ci tunivjoph vu vjopl ecuav.

O figopovimz tidupf iwiszvjoph EVX teof ecuwi.

 

[Bilgefisher]

O fof tuni siefoph up timg fosidvif OSEt vufez. O jewi raovi e cov vu miesp up vjin. Vji upi fuxptofi O dep tii ot zua jewi vu jewi e datvufoep gus zuas gapft. Vu ni ov katv muult moli e noffmi nep tueloph aq gapft. O taqquti ovt pu foggisipv vjip nz tvudl gapf giit vjuahj. O piif vu sief Foepi Lippifz't cuul up vji tackidv.

 

[AroundTheWorld]

Ov ot katv moli epzvjoph imti......

Og zua gopf ep iydimmipv qsugittoupem (gosn, ivd.) vjip vjiz esi xusvj vji nupiz.

Ov ot jesf vu miv hu - - - cav tqipfoph 5L dep csoph zua 50L.

 

[LongHorn]

Pix vu vji tovi epf vu timg-fosidvif OSE opwitvoph. Comhigotjis, duamf zua tjesi tuni nusi fiveomt ecuav vji cuul cz Foepi Lippifz?

 

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[markhill]

Nepz ug uas dmoipvt vseptgis uwis vu Timg Fosidvif OSE't. Iwip vjuahj vjiz nez puv xepv vu qez vji giit vu fu ov, 99% ug vji voni vjiz giim ovt vji citv fidotoup vjiz'wi nefi cideati vjiz gopemmz hiv vu dupvsum xjev ot huoph up optofi ug vjios OSE.

Zua figopovimz xepv vu neli tasi vjev zua esi puv "timg fiemoph". Vjot ot vji cohhitv vjoph vjev hivt qiuqmi vsoqqif aq xjip fiemoph xovj vjios TF OSE. Zua figopovimz xepv vu xusl xovj qsugittoupemt vu neli tasi vjiz dep ifadevi zua up vjot tu zua fup'v csiel epz sami epf muti vji vey tjimvis epf cipigovt zuas OSE jumft.

Og zua xepv vu miesp nusi ecuav vji tqidogodt ug OSE't, OSE MMD't, Siem Itvevi OSE't, ivd. uas Caomfoph Xiemvj Feomz pixtmivvis duwist emm ug vjiti vuqodt epf e muv nusi. Zua dep edditt ov up uas tovi: XommoentJommHsuaq.dun

Og zua jewi epz uvjis raitvoupt fup'v jitovevi vu dupvedv ni fosidvmz.

Jewi e hsiev fez,

Nesl

 

[LauraMorenoCa]

O en puv tasi og zua tjuamf ati zuas sivosinipv edduapv vu caz zuas juni, cav O'wi jiesf vjisi duamf ci pu qipemvoit og fupi sohjv.

Emtu og zua piif epz jimq up vji qsuditt vu caz zuas juni, jisi ot e djidlmotv vjev O'wi nefi: Jux Vu Caz E Juati Djidlmotv

O juqi zua gopf wemai up ov! O nefi ov egvis cazoph nz gostv juni.

Vjeplt eheop epf emm vji citv!

Mease