Early IRA withdrawl

[GeorgeM]

Is there any penalty for early withdrawal from an IRA for a down payment on a home and for a reduction of the mortgage of the new home?

If yes where do I look for the explanation of it

[MN2V]

Is there any penalty for early withdrawal from an IRA for a down payment on a home and for a reduction of the mortgage of the new home?

If yes where do I look for the explanation of it

Form 8606 exception 9 IF it is for payment on first home (see THE TAXBOOK 13-3 that is my bible)

[Pacun]

Up to 10K could not be subject to penalty to a first time home buyer if used to purchased a home. The house doesn't have to be new, but the tax payer has to be a first time home owner. As you know, some people who had a home and sold it could be first time home buyer depending on the states involved or the time lapsed.

[Booger]

Form 8606 exception 9 IF it is for payment on first home (see THE TAXBOOK 13-3 that is my bible)

[joanmcq]

Its Form 5329, not the 8606. The 8606 is for basis in the IRA. Exception 9. 'First home purchase' means if no home ownership in prior two years.

[bay]

Is there any penalty for early withdrawal from an IRA for a down payment on a home and for a reduction of the mortgage of the new home?

If yes where do I look for the explanation of it

Look at code section 72(t)

good luck

[MN2V]

Right...You said what I meant to say...what's a few numbers among friends...

[joanmcq]

I've seen so many screwed up 8606s; I started having nightmare visions of 'nontaxable' and 'penalty free' being confused....