DerbyDad03 wrote:

I know a couple that withdrew a huge sum from the wife's IRA and
bought a house with it. She paid no income tax on the withdrawal.
They then withdrew the same amount of money from the husband's IRA
and deposited it into the wife's IRA. He paid no income tax on the
withdrawal. They then took out a mortgage on the house they bought
and deposited the loan proceeds into his IRA. Now they take the tax
deduction on the mortgage interest every year. Once again, it's all
in the timing of the transactions.

Roth IRAs? If not, why no tax?

--

dadiOH
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