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URL:  https://boards.fool.com/i-would-document-the-whole-trail-of-the-funds-it-22811692.aspx

Subject:  Re: First-time homebuyer and IRA Date:  7/28/2005  2:34 PM
Author:  ptheland Number:  80136 of 132519

I would document the whole trail of the funds. It would be something like IRA withdrawal ==> checking account ==> HUD-1.

So show the funds coming out of the IRA and into your checking account. And show the funds (or a larger number) going from your checking account to the settlement agent.

On your tax return, all you show is that the funds were used for a 1st time home purchase. Keep the documentation in your files in case the IRS ever asks for it.

Of course, there are lots of questions as to why you would want to sacrifice your future retirement when you may not need to. I'll just direct you over to the Buying and Selling a Home board for more info on financing your home purchase. In a nutshell, you have options besides breaking into your IRA piggybank.

--Peter
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