- Your direct contributions to a Roth IRA can be withdrawn at any time for any reason.
- If you meet certain requirements, you can also use up to $10,000 in earnings toward the purchase of a home without facing taxes or penalties.
- While home prices continue climbing, the cost of borrowing is relatively cheap due to historically low interest rates.
You probably know a Roth individual retirement account is one way to save for your post-working years.
It also may come in handy for certain homebuyers.
Basically, up to $10,000 in Roth IRA earnings can be withdrawn — free of both taxes and penalty — for a home purchase if you meet certain requirements. That’s in addition to being allowed to withdraw your direct contributions at any time, because you already paid taxes on that money.
As home prices continue their upward trajectory, the amount of