Early Withdrawal

Question: How can I avoid 10% penalty on IRA funds to be used to pay off debt and buy a house.?

I received the funds via transfer from my ex as part of the divorce settlement. We owned a home together so I don’t qualify as a new home buyer and I am under 59 1/2. I have resigned myself to paying the taxes on withdrawal but is there any way to avoid the penalty.
I received the funds via transfer from my ex as part of the divorce settlement. We owned a home together so I don’t qualify as a new home buyer and I am under 59 1/2. I have resigned myself to paying the taxes on withdrawal but is there any way to avoid the penalty. The funds are still in my IRA but I need to use the money in the next 30 days for down payment and closing costs.

Answer: Waiting until you are 59 1/2 is the only way.

Divorce TV – Divorce and Pensions Part 1