ROTH IRA/ Housing Purchase

[jyurasek02]

This is a little off topic, but I have the following concern. What about some of the tax implications of rolling over a Traditional into a Roth. Are all of the amounts taxed at you income rate?

My income will be about 60K this year. I rolled over about 30K in 401K from previous emplyer into Traditional IRA’s,and then converted into Roth IRA’s. I elected to withhold the standard 10%, however, I am wonering if at tax time I will owe the remaining 18% to the IRS. Can anyone help me on this one?

[Raybyrnes]

Sorry, I am going to requalify the question. I wish I could start thinking about purchasig realestate inside of my IRA. That is not what I was talking about.

What I am referring too is that I believe I am eligible to withdraw funds from my Roth IRA penalty free for the purchase of a home. I believe it might also be on first homes only. I think that there is still a requirement that the funds need to have been in the IRA for 5 years.

Each successive year I wait to buy provides me additional opportunities to tap into the Roth to help with my Downpayment etc. I am also wonderingif ther is a cap on how much you can pull out.

[Raybyrnes]

Sorry, I am going to requalify the question. I wish I could start thinking about purchasig realestate inside of my IRA. That is not what I was talking about.

What I am referring too is that I believe I am eligible to withdraw funds from my Roth IRA penalty free for the purchase of a home. I believe it might also be on first homes only. I think that there is still a requirement that the funds need to have been in the IRA for 5 years.

Each successive year I wait to buy provides me additional opportunities to tap into the Roth to help with my Downpayment etc. I am also wonderingif ther is a cap on how much you can pull out.

[Raybyrnes]

Sorry, I am going to requalify the question. I wish I could start thinking about purchasig realestate inside of my IRA. That is not what I was talking about.

What I am referring too is that I believe I am eligible to withdraw funds from my Roth IRA penalty free for the purchase of a home. I believe it might also be on first homes only. I think that there is still a requirement that the funds need to have been in the IRA for 5 years.

Each successive year I wait to buy provides me additional opportunities to tap into the Roth to help with my Downpayment etc. I am also wonderingif ther is a cap on how much you can pull out.

[Raybyrnes]

Sorry, I am going to requalify the question. I wish I could start thinking about purchasig realestate inside of my IRA. That is not what I was talking about.

What I am referring too is that I believe I am eligible to withdraw funds from my Roth IRA penalty free for the purchase of a home. I believe it might also be on first homes only. I think that there is still a requirement that the funds need to have been in the IRA for 5 years.

Each successive year I wait to buy provides me additional opportunities to tap into the Roth to help with my Downpayment etc. I am also wonderingif ther is a cap on how much you can pull out.

[Raybyrnes]

Sorry, I am going to requalify the question. I wish I could start thinking about purchasig realestate inside of my IRA. That is not what I was talking about.

What I am referring too is that I believe I am eligible to withdraw funds from my Roth IRA penalty free for the purchase of a home. I believe it might also be on first homes only. I think that there is still a requirement that the funds need to have been in the IRA for 5 years.

Each successive year I wait to buy provides me additional opportunities to tap into the Roth to help with my Downpayment etc. I am also wonderingif ther is a cap on how much you can pull out.

[(former)FormerSanDiegan]

I believe that you can withdraw your contributions from a Roth IRA for any purpose without penalty. This rule applies to the contributions only not the earnings.

[(former)FormerSanDiegan]

I believe that you can withdraw your contributions from a Roth IRA for any purpose without penalty. This rule applies to the contributions only not the earnings.

[(former)FormerSanDiegan]

I believe that you can withdraw your contributions from a Roth IRA for any purpose without penalty. This rule applies to the contributions only not the earnings.

[(former)FormerSanDiegan]

I believe that you can withdraw your contributions from a Roth IRA for any purpose without penalty. This rule applies to the contributions only not the earnings.

[(former)FormerSanDiegan]

I believe that you can withdraw your contributions from a Roth IRA for any purpose without penalty. This rule applies to the contributions only not the earnings.

[(former)FormerSanDiegan]

You can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.

Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.

For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.

[(former)FormerSanDiegan]

You can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.

Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.

For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.

[(former)FormerSanDiegan]

You can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.

Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.

For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.

[(former)FormerSanDiegan]

You can withdraw $10,000 penalty free (and this can include earnings) for a first time home purchase. This is penalty-free if you’ve had the Roth for more than 5 years and can include earnings. The 10K limit applies to each individual, so if there are two of you you could take 20K out.

Most likely you have $10K of contributions and shouldn;t even bother with the paperwork of indicating the use as first-time home purchase. Remember you can take out your contributions at any time penalty-free for any purpose. The exception is that funds that are contributed as a ROllover need to be vested for 5 years before doing so.

For those of you who are eligible (less than 160K or so for Married filing joint), a ROTH IRA should be your first choice for excess funds after getting the match from an employer 401K.

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