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June 5, 2019
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If I paid cash for new primary residence in 2017, after IRA withdrawl, should my AGI have been not so high??

  • June 5, 2019
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    Best answer by VolvoGirl
    Buying a house does not affect your AGI.  Adding income from a IRA Withdrawal does increase your AGI and tax.  You are only avoiding the 10% Early Withdrawal Penalty for buying a house.  It is still taxable income.

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    VolvoGirl
    VolvoGirlAnswer
    Employee
    June 5, 2019
    Buying a house does not affect your AGI.  Adding income from a IRA Withdrawal does increase your AGI and tax.  You are only avoiding the 10% Early Withdrawal Penalty for buying a house.  It is still taxable income.