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<<I am in a situation where I want to buy a home in about a year, and I am getting married in about 1 1/2 years. I plan on keeping the house for more than 2 years. I opened a Roth IRA in March 2000 and contributed $500. I would like to keep contributing for the purpose of withdrawing penalty free as a first time home buyer. Now here is where the gray comes in. I suppose I won't be a first time home buyer by that time, but will my future wife be able to take my IRA Roth money out penalty free for her first house purchase?>>

There's no gray area here at all. Married or not, only you may take money from your IRA. If you do so for the purposes of a first-home purchase, then you or a family member (spouse, parent, child, grandchild) must be the purchaser. A fiance is not a relative, so the exception can't be used in that case. The good news, though, is that in a Roth you may take your regular contribution money (not the earnings) out at any time for any purpose without having to worry about taxes or penalties. Thus, you could use your contribution money for that purpose if you're so inclined.


Pixy, Funny name!, fool!, :-) So, if I am understanding correctly, my wife at the beginning of the tax year for 2003, can use my Roth withdrawl to purchase a house, right? Or do I even have to wait for the 5 year period to take out my $9,500 contributions out penalty and tax free? Am I getting too bogged down in the details or can I "take the contributions, (not earnings)out at any time for any reason penalty free"
I just wanted to clarify.
Thanks a bunch for your help!!
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