Can You Use Roth IRA Money To Buy A House? 
One of the great advantages to a Roth IRA is you can withdraw your basis at any time without paying any taxes or penalties . You can use this money for any purpose , including a home purchase . When you make a withdrawal from your Roth it is considered that your contributions come out first , then any conversion funds and finally earnings . Here 's an example : Let 's assume you have contributed a total of $ 20,000 into your Roth IRA and over time your account has grown to $ 40,000 . You are buying your first home and want to withdraw $ 30,000 . The first $ 20,000 will not be taxed as it reflects your contributions . As a first time home buyer the next $ 10,000 will not be subject to the 10 % early withdrawal penalty and will not be taxable as long as you 've had your Roth for over 5 years . This type of flexibility is what makes the Roth IRA attractive for many investors . 