First-Time Homebuyer

First-Time Homebuyer
An IRA owner who is exempt from the early-distribution penalty (which applies to IRA distributions that occur before the IRA owner reaches age 59.5) for distributing funds from his or her IRA to buy, build, or rebuild a home when having had no interest in a main home during the two-year period ending on the date of acquisition of the home for which the distribution is being made.
The maximum amount that may be distributed from the IRA on a penalty-free basis for this purpose is $10,000. This is a lifetime limit. For married couples, the limit applies separately to each spouse. This means that the combined limit for a married couple is $20,000.
Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it. To Rent or Buy? The Financial Issues - Part 1 - Thinking of buying a home? We look at the initial and ongoing costs as well as the so-called benefits. Exceptions To The 60-Day Rollover Rule - A non-qualified distribution might still be tax and/or penalty free under certain conditions. Here we explain what they are.