My wife and I are about to purchase a new home. Can we spread the $10,000 withdrawal the IRS allows across my IRA and hers? --L.F., Brooklyn, N.Y.
You can withdraw up to $10,000 from your IRA penalty-free for a first-time home purchase, and your wife can also withdraw up to $10,000 from her IRA penalty-free. The withdrawals from each IRA will be taxable (except any portion attributable to non-deductible contributions).
With Roth IRAs, you can withdraw contributions tax- and penalty-free anytime. And after you withdraw your contributions, you can each withdraw up to $10,000 in earnings as long as you haven’t exceeded the $10,000-per-person limit for all IRAs. If you haven’t held a Roth IRA for at least a five-year period, the earnings will be taxable.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Getting Out of an RMD Penaltyretirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How Your HSA Can Reimburse You for Medicare Premiums PaidMedicare Even if your Medicare premiums are automatically deducted from your Social Security check, you can take tax-free withdrawals from an HSA to reimburse yourself.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
Make the Most of the New Military Retirement Plan
retirement The government is offering a new retirement option so that service members who leave the military before qualifying for a pension can still receive some benefits.
