The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/ira-withdrawal-for-home-buying-15944873.aspx

Subject:  IRA withdrawal for home buying Date:  10/17/2001  6:43 PM
Author:  amanders Number:  54677 of 127907

Greetings!

My husband and I withdrew about $4,700 from his IRA to cover a 5% downpmt on an $83,500 house (houses are easier to buy in Indiana than a lot of places!). We withdrew the extra to cover the taxes on the amount withdrawn.

We're closing tomorrow, and the actual we amount we'll be paying at closing after all the math is done will be just under $2,300 (the sellers are paying $1500 in closing costs, we get $800 in prorated taxes, etc.).

Is this a big "oops"? Was the first "oops" withdrawing more than we actually needed for the downpayment? Can we still avoid the 10% penalty? Do we need to sit down with a tax accountant now?

Thanks in advance for your sage wisdom, fellow Fools! I searched the discussion boards and perused the tax FAQ's, but didn't exactly see an answer to this one--forgive for being ignorant and possibly dense. Heh.

--Abbie Anderson
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us