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Level 1
posted Jul 8, 2020 4:43:17 AM

Took out $10K for first time home purchase but the deal fell through

Hello everyone! Is it possible to put $10K back into IRA if the deal fell through? I'm within 120 days window from withdrawal day, and it was a qualified first time home purchase. 

 

Another question: since the deal fell through, would it be possible to do another withdrawal at some point, under the same exemption (first time home purchase)? 

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1 Replies
Level 15
Jul 8, 2020 7:53:35 AM

If the distribution was from an IRA, the answer to both questions is Yes.  A rollover for this reason is disregarded with respect to the one-rollover-per-12-months limitation.  By rolling over the distribution you have no reason to claim a first-time homebuyer penalty exception, so it remains available to you.