Distribution for first time purchase of a home

Submitted by Rene Nourse on Fri, 2013-02-15 16:14

If an IRA account owner withdraws up to the 10K limit without incurring the 10% penalty, does that individual’s name have to be on the loan or is it sufficient to just have their name on the title? I have a situation where a married couple is purchasing a home but the loan will be in one spouse’s name, (the non-IRA account owner) but the title will be in both names.

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Permalink Submitted by mk foss on Fri, 2013-02-15 19:09

You can use the first time homebuyer exception for a home purchased by the taxpayer, spouse or a descendent or ancestor of the taxpayer. You should have no problems in your situation.