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Question on taking out Roth IRA money to buy a house
Posted on 4/16/15 at 9:39 am
Posted on 4/16/15 at 9:39 am
So I opened a Roth just last December. I put in $5500 for 2014, and have put in $5500 for 2015.
I want to buy my first house, but want to make a larger downpayment, and I'm in a position where I'd rather not wait. If I take out $5,500 of my own contributions, can I then put in another $5500 throughout the remainder of this year?
I want to buy my first house, but want to make a larger downpayment, and I'm in a position where I'd rather not wait. If I take out $5,500 of my own contributions, can I then put in another $5500 throughout the remainder of this year?
6
Posted on 4/16/15 at 9:40 am to Tigerfan56
You will forfeit the opportunity to make up for 2014, but as long as the current tax year is open, you can do whatever you want with deposits/withdrawals.
Posted on 4/16/15 at 11:14 am to Tigerfan56
No, you have already maxed out your 2015 contribution.
Posted on 4/16/15 at 11:24 am to Tigerfan56
quote:
If I take out $5,500 of my own contributions, can I then put in another $5500 throughout the remainder of this year?
If you've already contributed for 2015, you can pull it back out, then put it back in later, no problem.
But you can't pay in extra this year to compensate for taking out money you contributed in 2014 or earlier.
Posted on 4/16/15 at 11:26 am to Tigerfan56
You have 60 days to replace contributions you took out without any penalty... so if you can get 5.5K back in 60 days you could put 11K into your Roth IRA this year.
Posted on 4/16/15 at 1:31 pm to Tigerfan56
The extra $11K is going to save you $50/month. Consider what that $11K could be worth in 30 years if left in the Roth, then think about whether it's worth it to you or not. Financing $11k over 30 years only amounts to $17,905.65 over the full 30 years at 4% interest. Do you think that $11K would be better served tied up in your house or in your Roth?
If it was me, I wouldn't touch the Roth unless I was fixing to lose my house or something, but it's really whatever you think is best for you.
If it was me, I wouldn't touch the Roth unless I was fixing to lose my house or something, but it's really whatever you think is best for you.
Posted on 4/16/15 at 6:28 pm to LSUGUMBO
If I could upvote your post 10 times, I would.
Posted on 4/16/15 at 6:39 pm to Tigerfan56
quote:
I want to buy my first house, but want to make a larger downpayment, and I'm in a position where I'd rather not wait. If I take out $5,500 of my own contributions, can I then put in another $5500 throughout the remainder of this year?
Yes you can.
In fact, you can possibly take out earnings from that 5500 penalty free (but not tax free). But you can definitely take out contributions of the same year and then put it back. It all only gets locked in at the end of the tax year.
Although I dunno why you would take a message board's word on this.
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