Taxes, IRA, First time home purchase?
May 25th, 2007 by IRA Rollover
cl3v3r boy asked:
I took an early distribution from my IRA account to finance the purchase of a first home. I took about $900 more than than I needed (the closing costs had been overestimated if you can believe that). I know I can rollover the $900 back into the IRA to avoid the 10% early distribution penalty.
I took an early distribution from my IRA account to finance the purchase of a first home. I took about $900 more than than I needed (the closing costs had been overestimated if you can believe that). I know I can rollover the $900 back into the IRA to avoid the 10% early distribution penalty.
Can I use the $900 as the second month’s payment on the mortgage to have it qualify as a home purchase expense and in this manner avoid the 10% penalty?
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This entry was posted on Friday, May 25th, 2007 at 6:07 am and is filed under IRA Rollover. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
May 26th, 2007 at 10:39 am
No. Mortgage payments don’t count.
May 29th, 2007 at 6:10 am
The notation additional principal payment.