With a Roth IRA, you can withdraw up to the contributed amount without any penalty. As a first time home buyer, you can also withdraw up to $10,000 from an IRA account to put toward your first home purchase, also without penalty. However, the question of whether you should do so can still depend on many factors. You should consider other available sources of funds first before tapping into your IRA. The reason is that once you take the money away from your IRA, you will lose out on future tax-free growth. You cannot put the money back, and all future contributions are still subject to the annual limit. So think about it before you tapping into your retirement savings.
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