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Updated over 7 years ago,

User Stats

8
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0
Votes
Brian Peterman
  • Chicago, IL
0
Votes |
8
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Will I incur a penalty or have a tax hit on a withdraw Roth IRA

Brian Peterman
  • Chicago, IL
Posted

Hey BP! Working on closing my first deal and I'm wondering if my thinking is correct. 

I am purchasing a 3 flat that I will be living in and this is my first home purchase. I have ~$20,000 total in my Roth IRA and I would like to withdraw all of it for use on this property. I have had it open for 3 years and have contributed $15,000 to it over those 3 years ($5,500 in 2015, $5,500 in 2016, $4,000 in 2017).

My thinking is that I am allowed to withdraw my contributions tax free, and since the gains are less that $10,000 and this will be a first time home purchase that I will also be allowed to withdraw the gains tax free. Are those assumptions true? Secondly I'm wondering if the entire sum is going to have a 10% early distribution fee or if  that isn't applicable. 

Thanks!

Brian

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