$10,000 Penalty Free IRA Withdrawal – Double Dipping
If I have both a Roth IRA and a Traditional IRA worth $20,000 each and I am looking to buy a home, may I take $10,000 out of both penalty free or is it $10,000 total between the two accounts?
If I have both a Roth IRA and a Traditional IRA worth $20,000 each and I am looking to buy a home, may I take $10,000 out of both penalty free or is it $10,000 total between the two accounts?
Permalink Submitted by Alan - IRA critic on Tue, 2014-03-18 15:39
The limit is 10,000 lifetime per taxpayer, not per IRA type. Note that under the ordering rules, if you have regular contributions in your Roth or conversions more than 5 years old you can distribute the balance of those amounts tax and penalty free without using any of the 10,000 limit. If you are married, each spouse has a 10,000 limit if they both have IRAs.