Using IRA assets for ancillary efforts (first time home purchase, college, etc)
When withdrawing funds from your IRA you may be able to avoid early withdrawal penalties (but not taxes) in several situations, including, but not limited to, the following:
- First-time home purchase (up to a $10,000 lifetime maximum)
- For qualified higher education expenses: To pay toward college expenses for the account holder, or for the account holder's spouse, children, and grandchildren.
- Unreimbursed medical expenses within certain limits or health insurance if you’re unemployed.
- The distribution is made in substantially equal periodic payments. (minimum 5 years or until the IRA owner reaches 59½).
- You become permanently disabled.
Please consult your tax professional for a full list of situations and determine if this type of withdrawal is right for you.