"For a married couple, both individuals must meet the definition of a first-time homebuyer. Thus, if one spouse owned a residence within a 2-year period before acquiring another residence, that residence will not qualify as a first-time purchase and any distributions used to purchase the residence will not qualify for the exception. This is also true even if the spouse was never a homeowner. §72(t)(8)(D)(i)(l) defines a first-time homebuyer as an individual (and if married, the individual’s spouse) who does not have ownership in a principal residence within 2 years of acquiring a new principal residence."
