what are tax implications if i use traditional ira money for home loan?

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i am retiree with home.want to purchase second home out of state,would need to use twenty percent
for home loan to come from my traditional Ira. About twenty five thousand or so. I would be able to pay mortgage loan on a thirty year . what are my tax implications. i am in lower tax bracket.

  1. Reply
    Wayne Z
    January 25, 2011 at 1:22 pm

    Assuming that you are over 59.5 years old, there is no 10% penalty.

    However, the withdrawal will be taxed as ordinary income assuming that it is entirely funded with pretax money.

    What you are doing with the money is irrelevant.

  2. Reply
    Don M
    January 25, 2011 at 1:58 pm

    There are several implications in that if the IRA isn’t completely Vested or matured or if you haven’t reached the full retirement age to withdraw a portion then you can be penalized upwards of 30% in taxes.

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