Roth IRA Rules

rbsoul · 10-11-2006, 02:04 AM

in reading the roth ira rules, i came across this paragraph:

"You are not allowed to perform all of these following transactions under both the traditional and the Roth IRA.

Borrowing funds from your IRA to pay off debt or loans
Buying personal property with funds from your IRA
Selling your personal property to an IRA"

What is someone after the age of 65 wants to withdraw all his retirement savings (e.g $200,000) to buy his son a house... is he NOT allowed to do that?

Gib · 10-11-2006, 02:06 AM

At 65 you can do what you want with the money. Even with a Roth IRA, you can borrow from it for real estate investment. Don't confuse real property with personal property.

Flyingifr · 10-11-2006, 06:58 AM

You cannot borrow from any IRA at any time for any purpose. It is a "prohibited transaction" and makes the entire IRA subject to the Distribution rules.

Gib · 10-11-2006, 08:39 AM

Let me rephrase then, you can use Roth IRA funds to invest in real estate.