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Contribute to sep ira for tax year 2018 and withdraw 10K for house in 2019?

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davidan

Junior Member
#1
What is the name of your state? FL

Hello

I plan on being a first time home owner in 2019, and I don't think I would make much money in 2019 since it will take me a while to find a job again. Since I won't be making much in 2019, I thought it would be great if I can use the 10K withdrawal from the IRA.

From what I've read I can withdraw $10k without any penalties if it's going towards my first home purchase. If I contribute to my IRA in 2019 for the tax year 2018, is it ok to withdraw it a few weeks later?
 


LdiJ

Senior Member
#5
What is the name of your state? FL

Hello

I plan on being a first time home owner in 2019, and I don't think I would make much money in 2019 since it will take me a while to find a job again. Since I won't be making much in 2019, I thought it would be great if I can use the 10K withdrawal from the IRA.

From what I've read I can withdraw $10k without any penalties if it's going towards my first home purchase. If I contribute to my IRA in 2019 for the tax year 2018, is it ok to withdraw it a few weeks later?
If you are not currently employed, you are not going to qualify for a mortgage. Therefore that could make the whole issue moot.
 

LdiJ

Senior Member
#10
My tax rate is high for 2018, it won't be for 2019. So if I do this I can save a few K from my 2018 taxes
Lets say that you are in the 22% bracket for 2018, and will be in the 12% bracket for 2019. 10k is the max for a first time homebuyer so you would save 2200.00 on your 2018 taxes, but would turn around as spend 1200.00 on your 2019 taxes for the same money, for a net savings of 1000.00. So, you won't be saving a few k, but you would save a modest 1k.
 

davidan

Junior Member
#11
Lets say that you are in the 22% bracket for 2018, and will be in the 12% bracket for 2019. 10k is the max for a first time homebuyer so you would save 2200.00 on your 2018 taxes, but would turn around as spend 1200.00 on your 2019 taxes for the same money, for a net savings of 1000.00. So, you won't be saving a few k, but you would save a modest 1k.
that's still better than nothing. That pays for some of my furniture for the house at least.
 
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