January 6, 2010
Sure you can! If you have not owned a home over the past two years you can use up to $10,000 from your IRA account toward the purchase of a primary residence. If you use money from a traditional IRA, you must pay tax on the amount you withdraw, but no penalty will be due. If the money comes from a ROTH IRA that is over 5 years old, no tax is due. If the ROTH IRA is less than 5 years old, you would only owe tax on the earnings portion of the distribution. This IRA withdrawal can be used to buy, build or rebuild a first home for you, your parents, your children or your grandchildren. The $10,000 limit is a lifetime limit, so you can use part now and part at a later time in your life. Combine this benefit now with the first time buyer's credit and the current low interest mortgage rates! A great time to be a first time home buyer!
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).