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URL:  http://boards.fool.com/thanks-for-the-clarification-megan-i-didnt-know-20811014.aspx

Subject:  Re: Want to give sister retirement and/or down p Date:  5/24/2004  7:15 PM
Author:  sprexumn Number:  71950 of 121565

Thanks for the clarification Megan, I didn't know that. I looked into it and now understand that the cash contributions can be taken out of it at any time, with no penalty. It's the interest earned that is subject to the special rules like only $10k for the first year home purchase and only after 5 years.

On the one hand this makes it straightforward for the IRA to be used for a downpayment if that is desired. On the other hand if I tell this to sis, that may lower the protective value of having the money in the IRA in the first place. I suppose I can just say (completely truthfully) that a downpayment can be taken out of the contributions at any time, but only out of the earnings after 5 years and only $10k.




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