Skip to main content
No. of Recommendations: 0
I want to convert my traditional IRA into a roth but am still confused about the rules. Can converted money be used for example, a new house, or just any new money put into the Roth?


I think what you are asking is if you convert the money from a traditional IRA in to a Roth, will you still be able to use the money as a first-time homebuyer. I'm not an expert, but I would think you could. On the other hand, why move the money to a Roth unless the house is a long way down the line.

You will want to post your question on the Tax Strategies discussion board to make sure what I'm saying is correct. Here is a link:

You may also want to read this series:
All About IRAs

There is a link for 1st Home Buyer on the right of the page. Maybe you want to leave the $10,000 you could use to buy the home in the traditional IRA to lessen the conversion tax burden this year.

Fool On,

Keith O'Malley

The Motley Fool Money Guide
In this friendly and helpful guide, you'll find simple answers to 500 frequently asked questions about personal finance and investing. You will learn about a wide range of topics including budgeting, buying a home or car, insurance needs, paying for college, investing in mutual funds or stocks, and managing your investment portfolio.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.