I recently pulled my contributions ($17k) out of my Roth IRA for a down payment on a pending home purchase. The main issue is I did not realize that the account needed to be > 5 years old to not incur any penalties (account made in 2015).
Now my pressing question in regards to the penalty is:
1.)Since the distribution is being used for a home purchase and down payment, does the amount that gets penalized get reduced from $17k to $7k ($10k allowed for home buying rule)?
2.)Is there any supporting paperwork that I need to have ready if the penalty gets reduced in the situation listed above?
Submitted September 03, 2018 at 12:01PM by Mplode https://ift.tt/2NdGXCZ
