Buying a home can be a big step towards securing your financial future, but saving for the down payment can be very time-consuming.
However, if you already have money in your retirement accounts, you might be able to use it to speed up the process. We’ll discuss which accounts don’t penalize you when you use the money to buy a first home as well as strategies for saving on penalties and taxes.
Using Your IRA for a Home Down Payment
The IRS discourages you from withdrawing money from your retirement accounts early by charging a 10% penalty on withdrawals before you turn 59 1/2.