Question for the more financially literate among us. I am closing on my house this week. I am a first time home buyer. I withdrew $10K from my Roth to pay the closing costs. After processing the withdrawal, I received the new, updated, final closing cost disclosure. As it turns out, the CCs are far less than the initial CC disclosure, and I will not need the entire $10K to pay them. I have 60 days in which I can deposit the leftover back into the IRA.

Do I have to? Can I put the leftover $$$ into a HYSA, or use it for home improvement projects? Does the amount of the closing costs get reported to the IRS so they know how much they were and compare them to how much I took out of the IRA?

Please, no lectures about how horrible it is to take money from a retirement savings account and use it to buy a home. This was not my main IRA, and it is not my "work" IRA that gets company matching. It was a side IRA that I opened through USAA about 10 years ago that I drop a couple hundred a month into.

It’s a Roth, you can always withdraw the contributions without penalty

Conversio too, and to access any gains without penalty if you are over 59 1/2

If it is your first home purchase, or also haven't owned a residence in the last 2 years, you can withdraw a one time $10,000 from your Roth IRA without penalty or taxes.  You will claim it on that tax year and it is only up to $10,000 once.

If the Roth account has been opened for at least 5 years from withdraw date and the contributions are at least $10,000 you could claim it that way as well.  

Either way you should be covered.

There is no 5-year rule on *contributions* to a Roth.  You may withdraw contributions at any time for any reason.  When you take money from a Roth, there is an order of sources.  Contributions come out first.

A "couple hundred a month" for 10 years = $24k in contributions.  So taking out $10k is not a taxable nor penalty based event.

There is no 5-year rule on withdrawing contributions.

https://www.investopedia.com/ask/answers/05/waitingperiodroth.asp