Traditional IRA
I have a guy that was married to his spouse. Now he has divorced his spouse, and he purchase the house in his name alone. Is it any way that someone could have a tax free withdrawal with a Traditional IRA?
I have a guy that was married to his spouse. Now he has divorced his spouse, and he purchase the house in his name alone. Is it any way that someone could have a tax free withdrawal with a Traditional IRA?
Permalink Submitted by Alan - IRA critic on Tue, 2013-09-03 22:04
The only way to have a tax free distribution would be if his IRA consisted entirely of non deductible contributions as reported on Form 8606. In addition, with respect to the 10% penalty on the taxable portion of the distribution, he may meet one of the other penalty exceptions, but would not meet the first homebuyer exception for purchase of his spouse’s share of a jointly owned home.