We are planning to buy a house in about a year and are looking for ways to build up $ for our down payment. We were thinking about stopping our monthly Roth IRA contributions and putting that money in our savings account (just for this year). Should we do this or just keep contributing and withdrawal from our IRAs if we need it under the 1st Home Buyers criteria since it would be penalty free?

Since the first funds out of your Roth IRA according to the IRS ordering rules are your original contributions…

And since you can withdraw your original contributions tax-free and penalty-free at any time for any reason…

It makes little sense to contribute to your Roth IRA if you're absolutely sure you're going to tap it in order to buy the house. otherwise, you're just putting the money and taking it out like a savings account.

Now, the best case scenario is you're able to buy the house AND contribute to your Roth IRA. Remember, time is your most valuable asset when it comes to retirement savings. you can pay off a mortgage fairly easily when you're 50 years old. Saving for retirement at that age is a lot harder.

Of the options you list, I would recommend suspending contributions for a year. Remember, you can make ALL your contributions for the year at once any time before you file your tax return for the year. you don't have to qualify to use this method. it is also less likely to be reported incorrectly on your tax return.

ALWAYS contribute to your IRA. this is one of the best tax benefits you have. Do not borrow from the IRA unless you really have to.