How do you buy a house tax free using a self directed IRA?

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How do you buy a house tax free using a self directed IRA?

Please list the detailed steps. I only have $9000. in my roth IRA.

2006-06-16 08:05:59 · 2 answers · asked by david d 1 in Business & Finance ➔ Renting & Real Estate

2 answers

I think you just tell the company who holds your IRA that you are wanting to buy a home and you would like to use your money in your IRA to put a nice down payment on one & they should be able to fill out a 1099 form (i think that is what they call that form-it is either 1099 or 1098) showing that that money is not taxable income.

2006-06-16 08:21:35 · answer #1 · answered by smilingblonde85 2 · 0⤊ 0⤋

you can use up to $10,000 for a tax free down payment towards a first time home purchase. You just with draw the money from the roth account and direct them not to withhold any taxes.

2006-06-16 08:24:11 · answer #2 · answered by mjc 2 · 0⤊ 0⤋