GeorgeM Posted February 1, 2008 Report Share Posted February 1, 2008 Is there any penalty for early withdrawal from an IRA for a down payment on a home and for a reduction of the mortgage of the new home? If yes where do I look for the explanation of it Quote Link to comment Share on other sites More sharing options...
MN2V Posted February 1, 2008 Report Share Posted February 1, 2008 Is there any penalty for early withdrawal from an IRA for a down payment on a home and for a reduction of the mortgage of the new home? If yes where do I look for the explanation of it Form 8606 exception 9 IF it is for payment on first home (see THE TAXBOOK 13-3 that is my bible) Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 1, 2008 Report Share Posted February 1, 2008 Up to 10K could not be subject to penalty to a first time home buyer if used to purchased a home. The house doesn't have to be new, but the tax payer has to be a first time home owner. As you know, some people who had a home and sold it could be first time home buyer depending on the states involved or the time lapsed. Quote Link to comment Share on other sites More sharing options...
Booger Posted February 1, 2008 Report Share Posted February 1, 2008 Form 8606 exception 9 IF it is for payment on first home (see THE TAXBOOK 13-3 that is my bible) Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 1, 2008 Report Share Posted February 1, 2008 Its Form 5329, not the 8606. The 8606 is for basis in the IRA. Exception 9. 'First home purchase' means if no home ownership in prior two years. Quote Link to comment Share on other sites More sharing options...
bay Posted February 1, 2008 Report Share Posted February 1, 2008 Is there any penalty for early withdrawal from an IRA for a down payment on a home and for a reduction of the mortgage of the new home? If yes where do I look for the explanation of it Look at code section 72(t) good luck Quote Link to comment Share on other sites More sharing options...
MN2V Posted February 1, 2008 Report Share Posted February 1, 2008 Right...You said what I meant to say...what's a few numbers among friends... Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 1, 2008 Report Share Posted February 1, 2008 I've seen so many screwed up 8606s; I started having nightmare visions of 'nontaxable' and 'penalty free' being confused.... Quote Link to comment Share on other sites More sharing options...
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