As per the IRS web site, one is allowed to borrow against your ROTH IRA for up to 10K for purchase of a new home provided you have been vested in the account for 5 years?

My questions are as follows:

1. I transferred my assets from one ROTH IRA to another (i.e different brokerage firms. I initally opened the accoutn over 5 years ago. However, the account to which was transferred into was less than 5 years. Am I still eligible?

2. If you withdrew the 10K are you eligible to replace it within a certain time period?

Thanks.

Zip Code: 78258

First off, you can never borrow against your IRA.

With respect to your Roth IRA, you always first take back the contributions you made into your Roth. Once you have removed all your contributions from the Roth, you begin taking out your earnings.

You can take out up to $10k of your Roth earnings to use for first time homebuyer costs as long as "It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit," says the IRS in Publication 590.

The IRS goes on to say, "You can withdraw, tax free, all or part of the assets from one Roth IRA if you contribute them within 60 days to another Roth IRA." So if you remove money from your Roth, you only have 60 days to put it back.

Check out IRS Publication 590, on Individual Retirement Accounts, available at www.irs.gov.

Zip Code: 01801