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Steve B
Lv 6
Steve B asked in Business & FinanceTaxesUnited States · 4 years ago

Can one buy a home with IRA savings without paying taxes or penalties if one is over 60.?

6 Answers

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  • RICK
    Lv 7
    4 years ago

    Depends on type of IRA

    A Roth yes

    A traditional you still owe taxes

  • Bostonian In MO
    Lv 7
    4 years ago

    No, not with a traditional IRA.

    Since you are over age 59 1/2, no penalties apply to IRA distributions regardless of what you do with the funds.

    Distributions from a traditional IRA are ALWAYS taxable, regardless of what you do with the funds.

    If the IRA is a Roth IRA, distributions are tax free once you've had the IRA for more than 5 years, regardless of what you do with the funds.

  • Max Hoopla
    Lv 7
    4 years ago

    Yes if the IRA is a Roth IRA

  • Slickterp
    Lv 7
    4 years ago

    The IRA withdrawals are always subject to tax, what you sue them for s not relevant.

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  • curtisports2
    Lv 7
    4 years ago

    If it's a traditional IRA - no penalty, but you will report as ordinary income the full amount you withdraw.

    If it's a Roth IRA and you have had the plan for more than five years, no penalty and no tax.

  • CarVolunteer
    Lv 6
    4 years ago

    No penalties, but you can't avoid the taxes on a traditional IRS.

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