Ask Kim


Tapping a Roth IRA for a House

I am 28 and want to buy my first home. I've had a Roth IRA for four years. Can I withdraw money from the Roth for a down payment without penalty or taxes?

[Answer]You can withdraw contributions from a Roth IRA at any time without taxes or penalties, and your first withdrawals are considered to be from contributions. After that, you can withdraw up to $10,000 in earnings from your Roth for a first-time home purchase without penalty, but you'll have to pay taxes on the earnings unless you've had a Roth IRA for at least five years.

See Also: How I Bought My First Home


Copyright 2018 The Kiplinger Washington Editors

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