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mark31
New Member

First home purchase

I used an IRA distribution for a home purchase. What qualifies as "first home"? I have been renting for 7 years but owned a home prior to that. Does "first home" mean going back forever?
1 Best answer

Accepted Solutions
MichaelL1
Level 15

First home purchase

First home purchase for IRA is:  

 "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.

The maximum penalty-free withdrawal from an IRA under the homebuyer exemption is $10,000."

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1 Reply
MichaelL1
Level 15

First home purchase

First home purchase for IRA is:  

 "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.

The maximum penalty-free withdrawal from an IRA under the homebuyer exemption is $10,000."

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