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Subject:  Re: IRA withdrawal for home buying Date:  10/18/2001  12:32 AM
Author:  pmarti Number:  54686 of 128043

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 We withdrew the extra to cover the taxes on the amount withdrawn.

To add just a little to the previous responses, you'll be taxed on the total amount withdrawn and not rolled back into an IRA within 60 days of the disbursement. In addition, you'll owe the 10% premature distribution penalty on any amount above your qualified home acquisition costs. IOW, you'll pay a penalty on the money you withdrew to pay the taxes.

Phil Marti
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