IRA Distribution for First Time Home Purchase
Related to the first time home buyer exception, are you able to reimburse yourself for a down payment and still qualify for the exception? For example, if the closing was on Friday and you paid the down payment with other funds, then on Tuesday of the following week, could you decided to take $10k out of your IRA and still qualify for the exception. Thoughts?
Permalink Submitted by Alan - IRA critic on Fri, 2024-11-01 17:29
Yes, you would still qualify for the penalty exception. You would have to claim it using Form 5329 with exception code 09.
Permalink Submitted by Greg Whicker on Sat, 2024-11-02 07:12
Thanks Alan