I am 28 and want to buy my first home. Iâ€™ve had a Roth IRA for four years. Can I withdraw money from the Roth for a down payment without penalty or taxes?
AYou can withdraw contributions from a Roth IRA at any time without taxes or penalties, and your first withdrawals are considered to be from contributions. After that, you can withdraw up to $10,000 in earnings from your Roth for a first-time home purchase without penalty, but youâ€™ll have to pay taxes on the earnings unless youâ€™ve had a Roth IRA for at least five years.
Got a question? Ask Kim at firstname.lastname@example.org.