First-time home-buyers are often surprised by the requirements of obtaining a mortgage, especially when it comes to the down payment. For existing homeowners like me, coming up with a 20% down payment usually starts with selling the home I’m in right now and using the equity to make a down payment on my next home. In fact, the IRS offers certain breaks for taxpayers that choose to use retirement assets to purchase a first home. However, the IRS offers an exception that allows you to withdraw up to $10,000 over a lifetime without penalty for first-time home purchases. Keep in mind that while the distributions are not subject to penalty, they are still subject to income taxes.

Source: Forbes May 20, 2018 16:30 UTC