IRA Pay Outs For First Time Homeowners Expense
An IRA distribution used within 120 days of the pay out for qualified acquisition costs of a qualified first-time homebuyer's principal residence is not subject to the 10% premature penalty tax if:

· the distribution is a taxable pre-age 59 1/2 withdrawal from a traditional or Roth IRA;
· and is a qualified distribution for purposes of the tax-free withdrawal rules from Roth IRAs.

The homebuyer (or spouse, if married) does not have a present ownership interest in a principal residence within the 2-year period ending on the new home's acquisition date.

A first-time homebuyer can be:

· the taxpayer,
· his/her spouse, or
· descendant or ancestor of either.

There's a $10,000 lifetime limit on distributions that may be treated as qualified first-time homebuyer distributions.'

Disclosure
MEA Financial Services/Paradigm Equities, Inc. does not give tax or legal advice. The comments regarding the law and tax treatment simply reflect our understanding of current interpretations of such laws. Since laws are always subject to interpretation and possible changes, we recommend that you seek the counsel of an attorney, accountant or other qualified tax advisor regarding these matters as it applies to your particular situation.