I've got about 5k in a Roth IRA that I rolled over from a Roth 401k about 6 months ago. I would like to use it and/or continue to build it up and eventually use it for a 1st time home purchase.

Are there rules that govern how long the money has to sit in the Roth IRA before I can use it for a home purchase? Also, can I take the entire amount, or does some still need to be left in the IRA?

  • First of all, the contributions (which carried over from the contributions to the Roth 401(k)) can be withdrawn at any time without any tax or penalty. Contributions are likely to make up the vast majority of the account value if you haven't taken out money from it previously. It's only if you withdraw from the earnings part that you have to worry about a tax and penalty, – user102008 Aug 11 '17 at 17:33
  • I believe that you do have to have a Roth IRA open for 5 years before you can use the first time home purchase to exempt tax and penalty if you withdraw from earnings. – user102008 Aug 11 '17 at 17:35