Question

Taking money from an IRA to purchase a home out of state for our retirement.

Forum|Forum|4 years ago
April 17, 2022
1 reply
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I lived and own a home in NJ. In July I took money out of my IRA as the down payment of a house in FL. Unfortunately I was laid off at the end of July and we had to move more quickly then expected. I moved in the middle of November to FL. I still have the house in NJ because I could not sell it before the end of 2021. Can't I say I re-invested the money from the IRA into a new home investment?

If you are thinking about the 10% additional tax relief, your FL home doesn't qualify for First-Time Homebuyer exemption.

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mikesim711njAuthor

I am not a first time home buyer.

Employee

Did you close on the house in FL within 120 days of taking that distribution for a down payment.?

If so you qualify for home purchase exemption.

but if you are over 59 1/2 it makes no difference anyway.

~~You are considered a first time homeowner if you lived in the NJ home long enough.~~

Oops.