Good news for 1st-time homebuyers! According to Federal regulations, down payments and other home purchasing expenses, can be paid with funds from IRAs and/or company plans while avoiding the potential 10% penalty for withdrawing before age 59 1/2
Do you qualify based on the following 6 conditions?
1. Funds must be used within 120 days from the date of withdrawal, with some exceptions (ie: home construction delays).
2. Funds must be used for home purchase, building or reconstructing a home (includes down-payment and settlement costs, but not mortgage payments)
3. Funds must be used on principal residence only (2nd home buyers do not qualify)
4. Funds can be used by the owner of the IRA or his/her spouse, child or grandchild.
5. Funds only for qualified 1st-time homebuyers, if married both husband and wife must be 1st-time homebuyers, even if spouse will not be an owner of the home.
6. Funds available are limited to – $10,000 per person per home purchase.
For more in-depth information, read the full article IRA Rules for 1st Time Homebuyers (written by Elliot Raphaelson – Sunday 10/27/2019 – Daily News at [email protected])