re: Question about a Roth account

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You won't be taxed for withdrawing contributions to a Roth IRA.

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Correct. Provided you take out less than you put in, it is penalty-free because you already paid taxes on it (unlike a traditional IRA). Anything above that is considered an early withdrawal with certain exceptions. I don't think a medical bill is one of them, for that you'd need an HSA which I'm guessing is not in play here.

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Whether or not its a smart idea to withdraw from your retirement account, as opposed to your down-payment savings, is another question.

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This also, but with today's rates as low as they are it might well be a good idea to get your mortgage ASAP. Most people's retirement depends quite a bit on their mortgage terms even though that isn't formally considered to be a "retirement" account.