All Forum Posts by: Kevin Zwieg

So can I avoid the 10% penalty by first rolling over the traditional into a Roth (paying say, 25% in ordinary income taxes in the process)? If that is the case I would have $14k*(0.75) + $5k = $15.5k in the Roth. 

Also, the inception of the traditional IRA was due to a rollover of a 401(k) after a change in employers. Is the entire "rollover" balance considered contributions?

I have found my first deal and am ready to write an offer. It's a bank-owned property that needs new carpeting, paint and a good cleaning. I am planning to clean it up and rent/sell it, NOT live in it. 

I am counting on my rollover IRA to fund the downpayment, and now it's game time to get those funds available as cash in hand.

I have: 

-$14k in a traditional IRA

-$5k in Roth IRA

I have pre-approval from my bank for a conventional loan in my name for $80,000 purchase price ($12k down, $68,000 loan).

I've searched the forums, but haven't found resolution to my exact situation. What are my tax consequences in liquidating my IRA accounts for a down payment? I need some assistance in determining if I can invoke the "first time homebuyer" qualified distribution and what my tax/penalty consequences will be. I am also assuming that I should avoid the self-directed IRA route, since I am counting on sweat-equity to add value to this property.

@George Blower Great! Thank you!

@Jake Miller What program are you using to search and return comps from MLS?

@Keith T. - I'm in the same boat, and am glad I came across this thread.

@Brandon Heimsoth - I hear/see this a lot about the freedom to withdraw all Roth IRA deposits free and clear whenever you want, except I find conflicting info from the IRS regarding qualified distributions:

https://www.irs.gov/publications/p590b/ch02.html#e...  

This seems to indicate that the Roth IRA funds are only available for withdrawal "free and clear" of penalty if the account is >5 years old or if other various qualifiers.

Can someone please clarify the restrictions on Roth IRA distributions when the account is less than 5 years old??

Thanks all.

I joined the Brew City meetup group and will keep an eye on their calendar...

Hello BP forum!

I am an engineer and currently work for a major ag/construction/lawn equipment manufacturer (I'll leave it to you to guess which one) at one of their factories in my area. 

My background and upbringing is true to form for the stereotypical Wisconsinite: dairy farming. My family's farm is multi-generational (currently 6th generation, to be exact), so I have been exposed many of the aspects and tangents of RE via involvement with the family business including generational wealth management, land acquisition, rental homes, tenants, etc. 

Now it's time to build my own portfolio for the wealth and health of my own family. It has only been within the last couple of months that I have realized that REI is a great fit for my skill set, experience, and investment interests.

I am evaluating some listings and opportunities in my area including a couple duplex rehab's. 

I look forward to actively joining the BP community. Also, if there are any RE groups in the SE Wisconsin area, let me know. I'm in the Oconomowoc area, to be exact. 

-Kevin