Qualified Acquisition Cost

Qualified Acquisition Cost

An early withdrawal from an IRA that is used to buy or build a home and/or to pay appropriate closing costs. While early withdrawals are usually subject to penalties and/or excise taxes, qualified acquisition costs are exempt from both of these.
References in periodicals archive ?
The distribution must be used within 120 days for qualified acquisition costs of the principal residence of a first-time homebuyer.
The term "qualified acquisition costs" means the costs of acquiring, constructing or reconstructing a residence; qualified acquisition costs include any usual or reasonable settlement, financing or other closing costs.
A lifetime $10,000 limitation is imposed "for qualified acquisition costs.