Jerzy wrote:

- quote -

Your OP stated you were discussing an IRA and wanted to know
if you could still avail yourself of the exception for first
home buyers. This post is a completely new discussion.

Qualified distributions and Withdrawal of original
contributions from a Roth IRA are never taxable. If not
taxable, there can not be a penalty as 10% times zero =
zero.

The owner of the account is not the one who specifies
whether a distribution is qualified or not. It is the
trustee that makes the determination. In addition, once
again you have not provided all the facts necessary to
determine whether your distribution is qualified or not. The
point is moot anyhow if you only withdraw original
contributions.

Try reading IRS Pub 590 that explains all the ins and outs
of Roth IRAs. http://www.irs.gov/publications/index.html

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Thanks Phil and Allan. Yes, my intention was to withdraw
only my contributions. I did it today over the phone and I
was not even asked about anything related to IRA.

I guess you're right they're going to determine the
distribution type although I'm pretty sure they were asking
to fill in a form when I attempted to withdraw funds online
(for some strange reason they (Scottrade) removed that
online option and asked to call instead).

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Jerzy wrote:

- quote -

Your OP stated you were discussing an IRA and wanted to know
if you could still avail yourself of the exception for first
home buyers. This post is a completely new discussion.

Qualified distributions and Withdrawal of original
contributions from a Roth IRA are never taxable. If not
taxable, there can not be a penalty as 10% times zero =
zero. The owner of the account is not the one who specifies
whether a distribution is qualified or not. It is the
trustee that makes the determination. In addition, once
again you have not provided all the facts necessary to
determine whether your distribution is qualified or not. The
point is moot anyhow if you only withdraw original
contributions. Try reading IRS Pub 590 that explains all the
ins and outs of Roth IRAs.
http://www.irs.gov/publications/index.html

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Jerzy" <javaguy1974[at]hotmail.com> wrote:

- quote -

That's why "maybe" is usually a surefire correct answer to
the first statement of any tax question.

- quote -

You can withdraw Roth contributions at any time without
owing any tax or penalty. See IRS Publication 590.

- quote -

Maybe. (Ta da!) But I doubt it.

If you're under 59 1/2, given the facts in your OP, this
will be a "nonqualified" distribution. You'll report it and
calculate your taxable portion (zero) in Part III of Form
8606.

Not all nonqualified distributions are taxable or subject to
penalty.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Thanks for your responses. However, I didn't mention that I
want to withdraw only my contributions. This is Roth IRA and
I want to confirm that there wouldn't be any penalties or
tax due. Also, the custodian wants me to indicate the type
of the distribution (qualified, non-qualified, etc.). Am I
correct in assuming that this would be a "qualified
distribution"? Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Jerzy wrote:

- quote -

It is way too late. You had 120 days from the closing to
use the IRA funds for the acquisition. In addition, the
amount is limited to $10,000 over your lifetime.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Jerzy wrote:

- quote -

Yes, it is too late. The withdrawal has to occur no more
than 120 days before closing, and cannot be used to pay down
the mortgage. You can read about it in IRS Pub 590.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I heard that IRA funds can be used toward a purchase of the
first home without incurring a penalty. I bought my first
home (condo) in March 2005. However, I didn't sell and use
IRA money at that time. Now I realized that it would be
better for me liquidate my and my wife's IRA accounts and
use the money to pay a portion of the mortgage. Is it too
late to do this without incurring the 10% penalty? Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >