Multiple IRA early withdrawls for 1st home?
I know that I can use $10,000 for the purchase of a first time home from my rollover IRA without the 10% penalty (provided I include as income and pay income tax on it). As a married couple filling a joint return can both my wife and I withdraw $10,000 from separate rollover IRA accounts for a total of $20,000. Any guidance and reference to IRS publications/clarifications would be greatly appreciated.
Permalink Submitted by mk foss on Tue, 2010-10-05 19:15
IRAs are INDIVIDUAL retirement accounts which means that each individual has the same ability to take out $10,000 without penalty for a first-time home purchase. Of course, you need to meet the definitions of a first-time homebuyer or have a descendent or ancestor that you’re helping out that meets the definition. The rules for the early withdrawals are in Pub 590 but I don’t think you will find a specific reference to the fact that each spouse can do it, because joint return status or married vs. single has no relevance in applying the provision.
Permalink Submitted by Alan Spross on Tue, 2010-10-05 19:22
See the TIP on p 53 of Pub 590.
Permalink Submitted by dave miles on Tue, 2010-10-05 20:54
Thank you all. IRS 590 tip seems to be pretty clear that we can do it.