10% Penalty Free for Kids?

Submitted by Kerry Schepers on Sat, 2020-02-22 18:08

I’m trying to find commentary in a newsletter, where a parent can take $10,000 out of their IRA before their age 59 1/2, penalty free for a first time home for their child. Thanks!!



Submitted by Alan - IRA critic on Sat, 2020-02-22 18:46

  • Newletters are not always right. Best to use actual IRS Publications. The link below to Pub 590B defines a “first time homebuyer” and the associated requirements for the penalty waiver. The child qualifies but must meet all of the  definition requirements. See p 24 of the Publication:
  • https://www.irs.gov/pub/irs-pdf/p590b.pdf

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