We have recently considered buying another property closer to family. Since selling our current home may take some time we were thinking we could possible use a retirement Roth account to come up with purchase price rather then take a bridge or other loan. We also do not have enough after tax money in regular accounts to cover the total purchase. We have been here for many years so it meets tax deduction for primary residence sale. I am thinking perhaps some other folks on this forum have considered this. It seems like this may be a good solution to avoid borrowing money for some undetermined period and paying loan costs. This also does not raise taxable income as this Roth money has already been taxed and has been in place longer then 5 year. The money from the eventual sale of current property can then go back to replace monies used in the purchase of the new place. We also plan to do more Roth conversions into the future as planning suggests. Are we missing something about this Roth use or is another way suggested to raise the money? I realize this does use some Roth money that is an advantageous account for growth but wondering what other items I may have missed.
The post Thinking of a possible reason to tap Roth earlier then planned appeared first on HumbleDollar.
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