Taking money from IRA after buying first house

[aim-high]

Hi,
I recently bought my first home. I hear that if I get 10K from IRA for purchasing the house, I dont have to pay penalty but just taxes. Now that I have already bought the house, is there a way, I can take the 10K for this house or buying second house because I have not used IRA money before ? My IRA is in vanguard and they cant answer my question. I totally understand that I should not use retirement funds hence limiting to just 10K.

[ua_guy]

Well, the adivce is to not use retirement funds, so that would mean $0 and not $10,000.

But no, the rules stipulate you can take funds penalty-free for the purchase of your first home only. If you didn't take funds for the purchase of your first home, then you will pay a penalty taking it on a 2nd purchase. Taking the money only applies at the time of purchase, and not after you bought the house.

I hope that helps.

[disneysteve]

I totally understand that I should not use retirement funds hence limiting to just 10K.

Well, the advice is to not use retirement funds, so that would mean $0 and not $10,000.

Agreed.

Never take money out of your retirement plans for anything other than retirement. Just because it is allowed doesn't mean it is a good idea.