Wishing to withdraw from my IRA penalty-free, am I a "first-time" homebuyer based on the following scenario?

[sp_prof]

I am selling a home that I have owned since 2004. We are closing escrow on July 3rd 2018. We have already entered a sale agreement on our future home, but escrow will not close on our future home until August 7th 2018. I would like to withdraw $10K from my IRA to assist with the down payment of our future home, and I would like the withdrawal to be penalty-free. I have read (and heard) from various websites and individuals in the finance industry that as long as I haven't owned a home at any point in the past two years, I can make a penalty-free withdrawal. Is this true and does my home selling/buying scenario allow me to make that withdrawal from my IRA penalty-free?

Thank you!

[Lisa995]

"as long as I haven't owned a home at any point in the past two years"

Didn't you say youre selling the home youve had since 2004?

[macuser_22]

How do your figure that if you currently own a home that you are selling?

First-time homebuyer.

Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement.

[sp_prof]

The question is based on the timing of my escrow. On July 3rd I will no longer own my home. On August 7th, I will own another home. In the month in between, I will not be a home owner.

[macuser_22]

A month is not 2 years.

[sp_prof]

I am sorry. I am trying to understand the limitations of these IRA requirements and I am not a tax expert or a financial expert. Responses such as "A month is not 2 years" are not helpful.

[dmertz]

Perhaps it's more easily understood if stated in the negative: You are *not* a first-time homebuyer if you or your spouse had an interest in a main home at any time in the 2-year period ending on the date of acquisition of the new home. Having no interest for only a month does not qualify.

[VolvoGirl]

“At any point in the last 2 years” means for the whole time (2 years) not just any time during the two years.

[Opus 17]

You are a first time homebuyer if you did not live in a home you owned at any time in the 2 years before closing on the new sale.

If you have been living in your prior home, you don't qualify.  If you moved out more than 731 days before 8/7/18 (such as to rent, or military orders, or to take a temporary work assignment) then you qualify.

[DoninGA]

From IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) page 26 - https://www.irs.gov/pub/irs-pdf/p590b.pdf#page=26

First-time homebuyer.  Generally, you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement.