Re: Question about IRA Withdrawal (Penalty-Free) for Homebuyers ??

If the deal falls through, and you put the moneys back into an IRA

> within the 120 days, you'll be OK.

How? I assume you're talking about a rollover, and the time limit for that is 60 days after the money came out of the IRA.

What I'd suggest is doing a direct transfer of the $10,000 (plus enough to pay the tax on it?) to an IRA at your bank early in the process. This does not count against the once in 12 months limit on rollovers. Now you can get your hands on the cash the day you need it.

If you get to the point that the lender wants it in a regular account rather than an IRA, do that, and your 60 day clock starts running. Make it a condition of your contract that the sale closes within that 60 days or it's off. Just make sure not to use that as earnest money so you can put it back in an IRA within the 60 days if the deal fails to close.

--------------------- Phil Marti, VITA Volunteer Clarksburg, MD

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Phillip Marti
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