serenajoy
I have a few questions about ROTH withdrawals for first time home buyers.
1. If my husband & I both have ROTH accounts open longer than 5 years, can we each withdraw $10K ($20K total) for the purchase of a first home?
2. If I (individually) inherited 50% of a home last year (I do not live there), but want to make our first home purchase the buyout of the person that inherited the other half of the house, would we still be considered first time home buyers? I don't want to take out money from a ROTH and find out that it wasn't an eligible withdrawal later. I have never purchased a home, but happened to inherit half of a home last year. I found the item below on HUD's site which seems to indicate that we could still be first time homebuyers since my husband does not have ownership of the property as it was left to me solely. But, if this is the case, can we withdraw only $10K or the full $20K? Any ideas? Thanks!
In order to help lenders properly identify first-time homebuyers, we are clarifying the definition of what constitutes a first-time homebuyer. A first-time homebuyer is an individual who meets any one of the following criteria:
An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers.
A single parent who has only owned with a former spouse while married.
An individual who is a displaced homemaker and has only owned with a spouse.
An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
An individual who has only owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
1. If my husband & I both have ROTH accounts open longer than 5 years, can we each withdraw $10K ($20K total) for the purchase of a first home?
2. If I (individually) inherited 50% of a home last year (I do not live there), but want to make our first home purchase the buyout of the person that inherited the other half of the house, would we still be considered first time home buyers? I don't want to take out money from a ROTH and find out that it wasn't an eligible withdrawal later. I have never purchased a home, but happened to inherit half of a home last year. I found the item below on HUD's site which seems to indicate that we could still be first time homebuyers since my husband does not have ownership of the property as it was left to me solely. But, if this is the case, can we withdraw only $10K or the full $20K? Any ideas? Thanks!
In order to help lenders properly identify first-time homebuyers, we are clarifying the definition of what constitutes a first-time homebuyer. A first-time homebuyer is an individual who meets any one of the following criteria:
An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers.
A single parent who has only owned with a former spouse while married.
An individual who is a displaced homemaker and has only owned with a spouse.
An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
An individual who has only owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.