Is there a tax protection when using Trad IRA (VA) to purchase a primary residence (CA)?We are over 65, and are purchasing a home in California. We are liquidating my husband's Traditional IRA acct in Virginia (IRA acct office in MD) to wire directly to the escrow company (CA) toward this purchase. Is there a way to avoid the tax issue of liquidating a traditional IRA toward a home purchase in California? This will be our primary residence. Our income will fall into the 15% category for taxes this year, without reporting the money in the IRA, but jump into the next category if this transferred amount is recorded as income.November 05 2012 - Fallbrook0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.