First time home buyer IRA exemption

[Openfire]

I know that there is an exemption of the IRA early withdrawal penalty up to $10,000 for a first-time home purchase, and that the definition of a "first-time home buyer" doesn't really have to be a first-time home buyer. The law defines "first-time homebuyer" as someone who has not owned a home for two years. So in addition to benefiting "first-time" home buyers, the law also helps "not-recent" home buyers. My question is: does it have to be an EXACT 2 years? Taxpayer sold home in Sept. 2011 and bought a place in another state in June of 2013. On one side of the transaction, either sale or purchase, it goes by the ratified contract date, not the settlement date.

[BP.]

On one side of the transaction, either sale or purchase, it goes by the ratified contract date, not the settlement date.

Check Pub 590, p. 58. Acquisition date is date of binding contract.