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Retirement Planning/Roth IRA for First TIme Homebuyer Septic Rebuild?


Hi there,

We are being forced to rebuild our septic system.  We are first time buyers.
Would this qualify for a tax-free, penalty-free Roth Contributory IRA withdrawal?


Richard Reyes, CFP
Richard Reyes, CFP  
Seems that when it rains it pours. I am not certain about your question but a septic tank repair does not fall under the 10% free-penalty requirements. However, with a Roth depending on whether the money was contributed after tax or converted from a traditional IRA, you may be able to withdraw your after tax contribution. It would be best if you contacted the Roth custodian to get information on your Roth.

The worst that can happen in this situation is that you have to pay the 10% penalty on top of the federal and state income tax due. Yes it might be a stinger on April 15, but a lot less painful than back-up sewage.

Good luck and thanks for your time.

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Richard E. Reyes, CFP


I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.


Through the years Richard has built a reputation as one of Central Florida's expert on retirement income distribution by providing sound, unbiased wealth coaching. We believe that Financial Planning is the problem and Wealth Coaching is the solution. The Wealth Coaching process gives you Peace of Mind, so you can stop worrying about your future. It helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth.

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B.S. University of Florida, Gainesville, FL
CFP Certificate, University of Central Florida, Orlando, FL

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