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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Is there a tax break if one withdraws money from ...

Resolved Question:

Is there a tax break if one withdraws money from an inherited IRA to purhcase a 1st home, or does one pay tax on the IRA money like regular income
Submitted: 8 years ago.
Category: Tax
Expert:  RD replied 8 years ago.

If this is a regular IRA (not Roth) than you will pay tax just as regular income. Purchasing 1st home will not give you any break in tax.

However, since this is a distribution from inherited IRS, you will not owe 10% early distribution penalty which would apply otherwise.

 

Let me know if you have any question.

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

 

 

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