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No. of Recommendations: 7
Another point is that an IRA, once cashed out, cannot be reclaimed. You will have lost all opportunities for tax-deferred compounding. Any future contributions are subject to limitations ($3500?). Add in the the 10% penalty and you're really throwing away your hard-earned money. From his POV, it isn't his money, so why should he care? (Sorry if that sounds crass) I'd definitely look for alternate sources for the down payment.

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