If the deal falls through, you can return the money to the IRA within that same 120-day window to avoid taxes and penalties. Traditional IRA :
: You must use the withdrawn funds within 120 days of receiving them. borrowing from your ira to buy a house
: There is a $10,000 lifetime limit per person. If the deal falls through, you can return
While you cannot technically "borrow" from an IRA in the form of a loan like you can with a 401(k), the IRS provides a specific exception that allows you to withdraw funds for a first-time home purchase without the standard 10% early withdrawal penalty. If the deal falls through