Yes, as long as it is in the same tax year and you are a qualified first-time home buyer.
The 10% early distribution penalty, on IRA's, has an exception for Qualified first-time home buyer distributions up to $10,000.
Per Schwab:
- It applies to your very first home purchase, of course, but it also applies if you or your spouse haven't owned a principal residence at any time during the past two years.
- The operating word here is 'principal', because even if you've owned a vacation home during that time, the exemption can still apply.
- Also, you yourself don't have to be the homebuyer. You can also qualify for the exemption if you're helping your spouse, child, grandchild or parent buy a home.
Once you enter the distribution information from your 1099-R form, we'll help you check for any exceptions that could reduce the tax.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
