The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Roth IRA withdrawl||Date: 5/30/2000 9:14 AM|
|Author: BGPenhollo||Number: 22256 of 78165|
<<I'm looking to use some money from my Roth IRA to help with the down payment for my house. I know I can take the money I have contributed without penalty. What about money I rolled over from a previous employers 401k? I paid taxes on it already.....can I touch this money as well without penalty or no?>>
"I assume the 402k money is still in a traditional IRA. If so, the anwer is yes, you may take that money without penalty. However, you will owe ordinary income taxes on the withdrawal, and the maximum you may take is $10K in a lifetime. If the entire amount is not spent on the home purchase, then that part not so spent will receive the 10% penalty."
I believe Jnichols was asking about using funds from a Roth IRA and I believe the sequence was roll-over from 401K to Tr