Early Distribution Penalty Exclusion

[jlstax1110]

If I borrowed money at the end of 2018 for a first time home purchase, then paid it back with money from my IRA in January of 2019, can I be exempt from the 10% penalty?  It was within 120 days but after the closing.  Rules are not clear.

[Opus 17]

No. To be eligible for the exclusion, the money has to be withdrawn from the IRA before you close on the new home.