A.G. Kalman wrote:
- quote -

Thanks very much to you both for your replies. :-) I'm
looking forward to becoming a home owner!

Cheers,
Brit

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

bhammer[at]xs4all.nl wrote:

- quote -

There is no requirement that your main home be physically
located on US soil.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

bhammer[at]xs4all.nl posted:

- quote -

Pub 590, which is the bible on IRAs, specifically provides
for an exclusion from the 10% penalty when an early
distribution is used to buy, build or rebuild a first home
-- up to $10,000. I have read every word under the various
references to this waiver of penalty, and there is _no_
reference to the home's location. So it looks to me as if
you're entitled to the exclusion.

The situation is so rare, however, that there is always some
risk of a challenge. But at least there's no
black-and-white restriction.

Good luck. Personally, I'd go for it, in your place. But
let's see if anyone else has a specific cite.

Bill

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I would like to redeem $10,000 from my Roth IRA to buy my first
home - the thing is that this will be in The Netherlands since
this is where I live. I am a non-resident US citizen (filing US
taxes each year). Is there any loophole stating that the first
home must be INSIDE the US? I've checked the IRS website and
have trawled the internet already to no avail.

Thanks in advance,
Brit

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >