Roth IRA Rules

[mrsandman]

in reading the roth ira rules, i came across this paragraph:

"You are not allowed to perform all of these following transactions under both the traditional and the Roth IRA.

Borrowing funds from your IRA to pay off debt or loans
Buying personal property with funds from your IRA
Selling your personal property to an IRA"

What is someone after the age of 65 wants to withdraw all his retirement savings (e.g $200,000) to buy his son a house... is he NOT allowed to do that?

 

[David_Staub]

The rules you quote relate to what you can do with funds that are in the Roth IRA. Once you take the funds out, you can do anything you want - it is your money.

The question of whether the removal of the funds from the Roth IRA a qualified distribution is a different question. However, that only affects the tax consequences of the distribution itself and does not limit what you do once the funds are out of the Roth IRA.