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Is there any advantage to using funds from a Roth IRA to

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purchase a home?...
Is there any advantage to using funds from a Roth IRA to purchase a home?
Submitted: 2 years ago.Category: Tax
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11/19/2015
Tax Professional: emc011075, Tax adviser replied 2 years ago
emc011075
emc011075, Tax adviser
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Hi. My name is ***** ***** I will be happy to help you.

Very little. If you take an early distribution from IRA to purchase your primary residence, you can exclude 10K from the penalty calculation. However, when it comes to Roth IRA the penalty only applies to interest. So, it really depends on your age and how much of the interest you will withhold.

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Tax Professional: emc011075, Tax adviser replied 2 years ago

If you are 59 1/2 and opened your Roth IRA more than 5 years ago, there 's really no tax benefit since your entire distribution is nontaxable anyway.

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Tax Professional: emc011075, Tax adviser replied 2 years ago

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