How can money in an IRA be used to purchase a home?
Money can be withdrawn, penalty-free, from a Traditional or Roth IRA if it will be used for a first-time home purchase. However, the limit is a lifetime maximum of $10,000 per IRA account holder and other specific withdrawal guidelines must be met. Contribution limits increase each year through 2008 and are subject to cost-of-living adjustments (COLA) each year thereafter. In addition to a contribution limit increase, those IRA owners who have attained age 50 may contribute an additional amount, allowing them to “catch up” on their retirement savings. Click here for a chart showing the contribution limits.
