fancydancer
Junior Member
What is the name of your state? New York
We've already closed on our house, but we're just getting ready to pay the closing costs on our second mortgage, which is an intra-family loan. I just withdrew money from my Roth IRA to cover these costs. Since the mortgage is tied to our first time home purchase, will it be penalty-free? Or will I still have to pay the 10% since we've already closed? How will the IRS know that the money was withdrawn after closing?
We've already closed on our house, but we're just getting ready to pay the closing costs on our second mortgage, which is an intra-family loan. I just withdrew money from my Roth IRA to cover these costs. Since the mortgage is tied to our first time home purchase, will it be penalty-free? Or will I still have to pay the 10% since we've already closed? How will the IRS know that the money was withdrawn after closing?