Can I withdraw from my Roth IRA to payoff my house without penalty?
I have $52K in a Roth IRA. My mortgage payoff would be $77K. I have enough in savings to make up the difference. Can I withdraw without a penalty. Is it wise to do so? There are a couple of questions here, so let’s take them one at a time… First off, can he do it? As it turns out, first-time homebuyers can withdraw IRA funds to help finance their purchase. As far as I’m aware, however, you cannot withdraw funds to pay off a house that you bought previously without incurring a penalty. That being said, you can withdraw Roth IRA contributions at any time, without taxes or penalty. Moreover, as long as the funds are properly “seasoned” you can also withdraw Roth IRA conversions (typically five years after the conversion event) regardless of your age. But the same is not true of Roth IRA earnings, so be careful or you might wind up having to pay the piper. Next, should he do it? Without knowing the full details of his situation, it’s hard to say with certainty. However, my view is that it’
