{"id":813,"date":"2016-03-02T15:24:39","date_gmt":"2016-03-02T20:24:39","guid":{"rendered":"http:\/\/www.etax.com\/blog\/?p=813"},"modified":"2016-02-22T15:25:14","modified_gmt":"2016-02-22T20:25:14","slug":"ira-payouts-for-major-expenses","status":"publish","type":"post","link":"https:\/\/www.etax.com\/blog\/2016\/03\/02\/ira-payouts-for-major-expenses\/","title":{"rendered":"IRA Payouts for Major Expenses"},"content":{"rendered":"

Using funds form your IRA<\/a>, whether a traditional plan or a Roth, can be a great way to cover some major expenses that you may incur through your lifetime. Just be aware of certain terms and conditions that apply when withdrawing.<\/p>\n

Home Purchase<\/u><\/strong><\/p>\n

If you chose to withdraw funds from your traditional IRA before you\u2019ve reached the age of 59 \u00bd, or if you withdraw earnings from a Roth IRA, you can expect to be penalized at 10%. However, if you use the funds withdrawn to purchase your first home, the penalty is waived on up to $10,000 of the IRA money taken. The same is true if you use the money to buy a first home for your parents, grandparents, child or grandchild as well.<\/p>\n

Education<\/u><\/strong><\/p>\n

Again, the standard 10% penalty is not applicable if the money you\u2019ve withdrawn from your traditional IRA or earnings from a Roth IRA are used to pay for education expenses for any of the following relationships:<\/p>\n