Updated over 8 years ago on .
Most recent reply
presented by
Tax question: first time homebuyer exception for IRA
Ok, so here is the order of events:
Before the end of last tax year, made a 5.5k after-tax contribution to an IRA. Did not file for the deduction on that money.
Withdrew the 5.5k from the IRA to help with closing on first house.
Just rolled over pre-tax money from an employer plan to that IRA
Want to take out more, up to the 10k allowed, to go toward closing.
Couple questions:
-Do I still need to file for that deduction on that original contribution? My guess is that I do, so that they'll refund me back the deduction for the 5.5k, but they'll tax it back on the withdrawl, to break even.
-If that is the case, how much of the pre-tax money can I withdraw?
Can I take out 4.5k pre-tax (~3800 after tax)?
Can I take out 4.5 after-tax (~5600 pre-tax)?
In other words, how far into the 10k allowed am I at right now after taking out 5.5 after tax?