Withdrawing funds from a Roth IRA for a first home purchase (with out a penalty)
Is it possible for the owner of a roth IRA to withdraw funds toward his first home purchase without a penalty? His contributions were made in “2016” “2017” “2018” Totaling approximately $11,400.00.
Thank You
Margaret Jackson
520 975 1013
Permalink Submitted by Alan - IRA critic on Tue, 2019-08-13 17:45
Regular Roth contributions can be withdrawn at anytime without tax or penalty, and those regular contributions always come out first. If Roth conversions have to be tapped, the first home exception can be used to waive the penalty for conversions held under 5 years. There is no reason to show a qualified first home purchase on Form 8606 (10k lifetime max) unless the Roth owner needs to tap earnings in the Roth. Earnings are only withdrawn after all regular and conversion contributions.