I had a regular IRA that I rolled into an Roth, and paid the taxes on it. Since then it has grown dividends etc. I would like to take out the original amount that I paid taxes on to purchase a second home. Can I do this without penalty?
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Yes. You may withdraw your principal investment in a Roth IRA at any time and use those funds to purchase a home. That’s one of the big advantages of a Roth IRA. Additionally, you won’t pay taxes on withdrawals of your earnings as long as you’ve reached age 59 1/2 and have met the 5 year holding period requirements.