IRA Withdrawal for First Time Home Buyer

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L1: IRA Withdrawal for First Time Home BuyerIs it allowable to take the $10,000 First Time Home Buyer withdrawalAFTER the sale has closed?In other words, if we closed onour home on October 31, could we take the money from a non-72t IRAnow? Thanks!2008-11-16 18:06, By: billysi, IP: []
L2: IRA Withdrawal for First Time Home BuyerShort answer is…………maybe.The early withdrawal penalty waiver applies to qualified acquisition costs, which include the costs of buying, building or rebuilding a home which meets the first home definition. Obviously, this is not a problem if you are building or rebuilding, but in the likely case that you just closed on anew purchase, the acquisition cost has already been paid.The question is whether reimbursing yourself for closing costs that you fronted will qualify, and to my knowledge the IRS has not ruled on that. The general consensus would be that this would not qualify in an audit, but if you wanted to be aggressive, you could claim your exception on a 5329. You could also make the case that this is not fundamentally different than the exception for higher education or medical expenses and for those expenses all you need is a payment for the expense and an IRA distribution in the same year.Boils down to how aggressive you want to be.2008-11-17 15:20, By: Alan S., IP: []