Gifting money from an IRA or 401K
I would like to gift my son money from my IRA or 401K for the purchase of his new home. Can I do this without being taxed?
Terry Says
No, this strategy won’t work for you. First time homebuyers get a hardship exemption — and even so, it’s tough to avoid penalties. Read this article: https://www.bankrate.com/real-estate/use-401k-to-buy-a-house/#withdrawing
And if you have to borrow from your OWN retirement plan to help your son, it is not a good idea. He won’t be likely to support you when you run out of money in retirement. So keep your money, and make him the beneficiary — if there is any left over.
I know you love him — but the rule is the same as on the airplane: Put your mask on first, then help others!
