IRA First-Time Home Buyer
USAWithdraw up to $10,000 from your IRA for a first-time home purchase. The early-withdrawal penalty is waived; Traditional IRA amounts are taxable. IRA room.
Traditional IRA: penalty waived; amount is taxable as income.
Traditional IRA withdrawal is taxable as income. Roth qualified withdrawal is not.
First-time home buyer definition and qualifying expenses apply. Verify with IRS.
About this calculator
The IRS allows you to withdraw up to $10,000 from your IRA for a first-time home purchase without the 10% early-withdrawal penalty. You do not repay the amount (unlike Canada's HBP). Traditional IRA withdrawals are taxable as income; Roth IRA qualified withdrawals are tax- and penalty-free. This calculator shows the penalty (zero) and taxable amount based on your withdrawal and IRA type.
How it works
Withdrawal: You can withdraw up to $10,000 (lifetime) from your IRA for qualified first-time home buyer expenses. The early-withdrawal penalty is waived. You must meet the IRS definition of first-time home buyer and use the funds for qualified costs (e.g. purchase, building).
Tax: Traditional IRA: the withdrawal is taxable as ordinary income. Roth IRA: if the withdrawal is qualified (e.g. after five years and for the home), it is tax- and penalty-free.
Verify eligibility and qualified expenses with the IRS. Not tax advice.
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