How Do You Make Early IRA Withdrawals Without Being Penalized?
IRA withdrawal rules can be confusing. But understanding when you can make an early IRA withdrawal without getting penalized can mean the difference between buying a house or paying for a crucial medical treatment. Read on for ways to get around the 10% penalty that’s usually applied to IRA withdrawals before the policy holder is 59.5 years old. The IRS’ rules for early IRA withdrawal allow you to take money out of an individual retirement account prematurely if the money is being used to pay for college. The money can be used to pay for your own educational expenses, or for college for your children or grandchildren. First time homebuyers are given a one time pass when it comes to tapping their IRA. The IRS will not impose the 10% penalty on first time homebuyers as long as the withdrawal amount is less than $10,000. If you’re married both you and your spouse can pull $10,000 from each of your accounts for a combined amount of $20,000. That’s a great start for down payment. If the IRA
