Message Font: Serif | Sans-Serif
No. of Recommendations: 0

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 We withdrew the extra to cover the taxes on the amount withdrawn.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
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.