Using IRA to purchase a home
My husband and I co-signed a mortgage for our son in 2004. Since that time, our son has lost his job and we have been paying the mortgage while he is searching for a new job. My question is: Is there a way we can withdraw funds from our IRA WITHOUT PENALTY, to purchase his house; and can he and his family continue to live in it?
Permalink Submitted by Anonymous (not verified) on Tue, 2010-03-02 17:29
My understanding is that if you actually purchase the home from him outright, you and your spouse must have had no interest in a home for the last two years to take advantage of the First Homebuyer exception. I would assume you own your own home so you would not qualify for this exception.
Remember you can always remove Roth basis (contributioms) for any reason without penalty.
pko