Apr 9

I have two different IRA accounts with over 5K in each one. Is it possible for me to withdraw $5K from each account or should I consolidate them first then withdraw $10K ?

one comment so far...

  • Spent to much time thinking abou Said on April 9th, 2010 at 3:58 pm:

    Don’t worry about that other answer. Firstly it depends if any of the IRAs are Roths. If they are Roths you take the money out no penalty and no tax (its already been paid) to the amount that you actually contributed. If they are traditional IRAs take the most money out of the account that is paying you the least amount of interest. You do not need to consolidate them. These withdrawals will just be documented as a premature distribution on your IRA withdrawal form. This form does not distinguish between a first time home buyer purchase (penalty free) and a regular IRA withdrawal (10% penalty). YOU will document this fact when you file taxes. Have you thought about FHA 3% down or trying any other way to get the down payment and not destroy your IRA? If you can come up with the money elsewhere look into an Roth conversion for your Traditional IRA.

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