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you to withdraw any funds from them before you turn 59½ – and to enforce that, they charge a 10% penalty on the amount withdrawn, along with income tax.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

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