IRA Tax Penalties?

Question

I have a conduit IRA that was a rollover from a previous employer. It totals $3243 and change. My husband and I fall into the 15% tax bracet and want to take this in a lump sum towards our first home purchase. What taxes should I pay on this and how is that calculated. Thanks. Also if it helps we live in the state of Arizona.

Answer 1

If it's a traditional IRA and not a Roth, you'd have to pay income tax, 15%, on the withdrawal, or $486..  The exception for $10K for a first home means you don't have to pay the 10% penalty for early withdrawal.  You still have to pay the income tax.

Answer 2

You taxes should be zero. You can use of to $10,000 from a qualified retirement account for the purchase of a first home, $20,000 if you are married.

Read full article below. Don't pull money toooo early.