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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121599  
Subject: Re: SEP IRA Date: 11/7/2003 7:17 PM
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I am self employed. I am also saving for a house. Would a withdrawl from an SEP-IRA (traditional not Roth) be considered a qualified withdrawl for a first time homebuyer like myself?

As Ira points out, it sounds like you would qualify for a penalty-free withdrawal from your IRA (which, IIRC, is limited to a $10k withdrawal, but I will stand corrected on that point, if necessary). The withdrawal itself would be taxable income.

The bigger question is, why do it? Once you take money out of a retirement account, like your IRA, you can't put it back. You have only one opportunity (admittedly a one-year-plus long opportunity) to put money away for retirement each year. So to take money out of a retirement account could be thought of as mortgaging your retirement for current spending.

If you're OK with that, fine. I just want to point out that just because you can do something, doesn't necessarily mean that it is good to do it.

--Peter
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