Contributions of property are not allowed. You can always make nondeductible IRA contributions to the limits above. The earnings on these contributions accrue on a tax-deferred basis, but your original contribution is not currently deductible. These limits only apply if you re covered by an employer s retirement plan. There are no income limits if you don t participate in another retirement plan.
Withdrawals are taxable when made.
It s important to note that first-time is defined as anyone who has not had an interest in a primary residence for the past two years. You can play with this one. If you currently own your home jointly with your spouse, redo the deed to have only one of you own the house. Roth IRA With the Roth IRA, you get no deduction for your contributions but all of the principal and earnings come out tax-free. Moreover, distributions for educational expenses may also be penalty-free, subject to ordinary income taxes on the accumulated earnings.