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IRA withdrawl for home purchase and doing another IRA again?

The last post in this topic was posted 2573 days ago. 

 

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We are closing on Oct 28th and decided to cash in the Individual IRA for 4K for downpayment before COE. But I know I will have to pay tax on this withdrawal.

 

Can I go ahead and do another IRA for 2013 while filing for taxes this year? This will be just like borrowing 4k for few months.

 

Anyone ever done this and will this work?

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My husband works for the IRS and he says he believes that as long as you roll it over into another IRA within 60 days you should not be taxed or pay a penalty. But since he's furloughed and isn't able to look it up, he can't be 100% sure. :wave:

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My husband works for the IRS and he says he believes that as long as you roll it over into another IRA within 60 days you should not be taxed or pay a penalty. But since he's furloughed and isn't able to look it up, he can't be 100% sure. :wave:

Well first timehome buying is one of the exceptions where you will not be taxed. Also, the deduction is from past years' IRA. I will do another IRA again before Apr 15, 2014 for current tax year. This is the individual IRA, not ROTH IRA if that matters.

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He said you won't have to pay the penalty because the withdrawal is for an approved use, but he is "pretty sure" you'll still have to pay tax on it if it's not put into a new IRA within 60 days, regardless of the type of IRA.

 

Like I said, he's going by memory so YMMV. :)

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He said you won't have to pay the penalty because the withdrawal is for an approved use, but he is "pretty sure" you'll still have to pay tax on it if it's not put into a new IRA within 60 days, regardless of the type of IRA.

 

Like I said, he's going by memory so YMMV. :)

Thank you for the confirmation. I have the downpayment, just didnt want to empty my account when I have other sources.

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The last post in this topic was posted 2573 days ago. 

 

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