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.
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.
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.