First-time Homebuyer Early Withdrawal
If a client is wanting to get a distribution for first-time homeowner from their IRA to build a home, can it be in payments versus needing to take a lump distribution?
For example:
Client would like to max their $10,000 for first-time homebuyer this year. They would like to take $2,500 quarterly though through the process of building the home.
Will the IRS allow this?
Permalink Submitted by Alan - IRA critic on Thu, 2015-11-12 22:39
Yes, there is no requirement for a lump sum distribution of the 10k, and no requirement that the entire 10k be withdrawn in a single year or for a single property meeting the first home definition.