is therea tax law that would allow the use of an IRA to purchase a 2nd home w/o having?

Question

to incurr any penalties

Answer 1

Well, if you are over 59 1/2, you can withdraw the money from an IRA to purchase the 2nd home, without having to pay the 10% penalty for the withdrawal, and there would be no limit to the amount you could withdraw. You would still be subject to the regular tax however, but not the 10% penalty. If you're under 59 1/2, you would still have to pay the regular tax, but would be subject to the 10% penalty, although there is an exception for up to $10,000 in expenses for a FIRST-TIME home buyer to buy his house. The $10,000 exemption is a lifetime exemption, so you could only use $10,000 over your entire life.

Answer 2

No. You can withdraw up to $10k for the downpayment and/or closing costs as a first-time buyer without paying the 10% penalty. The withdawal is still fully taxable as ordinary income. There is no way to do that for a second home or if you are not a first-time buyer.

Answer 3

no, you can withdraw for FIRST TIME homebuyer, as defined by the IRS.

Answer 4

no