Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 3
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.

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.
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.