Can You Use Your IRA to Buy a House?

Can You Use Your IRA to Buy a House?

Investment Retirement Accounts (IRAs) are supposed to be sacrosanct. Because they’re intended to help you save for retirement, the Internal Revenue Service (IRS) doesn’t want you to withdraw any funds from them before you turn 59½ – and to enforce that, they charge a 10% penalty on the amount withdrawn, along with income tax. But every rule has its exceptions. It’s possible to use funds from an IRA, penalty-free, to buy a house, even if you aren’t six months away from your 60th birthday.

The rules differ depending on which type of IRA you have, though. Here are your options. (Investopedia has curated a list of the best brokers for IRAs for those looking into opening one, by the way.)


Who’s Qualified for the IRA Exemption


The Traditional IRA Exemption


The Roth IRA Exemption


Self-Directed IRAs


Tap Your 401(k) Instead


The IRA Rollover


The Bottom Line

Source link

Technical Analysis, Stockmarkets Insights, Trading Tools: Biedex.com
Register New Account
Reset Password