real estate

Tapping a Roth IRA for a House

You can withdraw contributions from a Roth IRA to help purchase your first home.

Question:

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.

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