
INSIGHTS FROM OUR NATIONAL TAX OFFICE	MARCH 31, 2015

Is Tapping Your IRA for a Home Down Payment a Good Idea?

Although tarnished by the sluggish economy over a number of years, the "American Dream" of owning a home is still a top priority for many people. And, with the current low home mortgage interest rates, the appeal of home ownership has increased. However, it takes cash to close a home ownership deal, leading many people to search for ways to increase the money they have available for closing.

Many potential homebuyers may have a cash solution to home ownership they haven't considered: their Individual Retirement Account (IRA). But, is it a good idea and right for you?

Any early distribution from a retirement account deserves serious consideration. This article can help you learn more about opportunities and challenges when tapping your IRA Account to buy a home.

Eide Bailly's National Tax Office serves as a resource for clients to help analyze complex tax issues related to business decisions. Our professionals are committed to helping clients stay informed about tax news, developments and trends through various specialty areas, including cost segregation studies, wealth transfer, state and local taxation, international tax, IRS controversy and procedures, R&D tax incentives, tax-exempt organizations and tax legislation.

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This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Eide Bailly LLP and the author do not assume responsibility for any individual's reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique before recommending the technique to a client or implementing it on the client's behalf. To request reprints of this publication, send a written request to RequestReprints@eidebailly.com. © 2015 Eide Bailly LLP.