Using IRA First Time Home Purchase Withdrawal for Remodel Work

[Curtis Chism]

I have an opportunity to purchase a house that just needs some flooring, paint, and appliances to finish it up. It's been more than 2 years since I owned a home. I may pull some money from IRA using the first time home buyer exemption to avoid the 10% penalty tax. Is it possible to use those funds towards completing the remodel? I read a couple blogs that said it can be used towards building a house and remodeling but I can't find anything from the IRS specifically addressing this. Thanks for your help.

[Mark S.]

@Ben F. @Curtis Chism

You absolutely CANNOT BORROW from an IRA. There are no loans on an IRA.

Other types of retirement plans, like 401(k), 403(b), etc., may allow for loans based on the plan document, but NOT an IRA.