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First-time buyer exception to 10% IRA WD penalty

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    First-time buyer exception to 10% IRA WD penalty

    TP, under 59 1/2, w/d $100K from IRA and used $10K to pay for closing costs on purchase of home after divorce. While married, TP was jointly liable on the principal residence mortgage with spouse, but was not on title. Residence was purchased by TP's spouse prior to their marriage, and refinanced during the marriage when TP was added to the new loan. Does TP qualify as a first-time home buyer for 10% penalty exception?

    #2
    Did TP get any money or property for his or her share of the house under the divorce settlement? If yes, TP was part owner of house. If no, TP could qualify under first time home buyer rule.

    Just my opinion. I have no citation to back it up with.

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