Qualified Acquisition Cost

AAA

DEFINITION of 'Qualified Acquisition Cost'

These are items, in the context of IRA withdrawls, that constitute penalty free withdrawls for an IRA owner who uses the assets to purchase a first home.

INVESTOPEDIA EXPLAINS 'Qualified Acquisition Cost'

These include the following items:

- Costs of buying, building, or rebuilding a home.

- Any usual or reasonable settlement, financing, or other closing costs.

RELATED TERMS
  1. Upstairs Deal

    A business agreement that is made by upper management, and is ...
  2. Home Buyers' Plan - HBP

    A program in Canada that allows RRSP holders to withdraw up to ...
  3. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  4. First-Time Home Buyer

    An individual who is purchasing a principal residence for the ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative ...
  6. Self Invested Personal Pension ...

    A tax-efficient retirement savings account available in Great ...
RELATED FAQS
  1. How can I use my Roth IRA savings to buy my first home?

    A Roth IRA is intended to be used as a long-term savings vehicle for retirement. There are tax penalties in place to dissuade ... Read Full Answer >>
  2. How can investors influence the c-suite?

    Investors in publicly traded firms can influence C-suite executives by exercising voting rights or engaging in investor activism. ... Read Full Answer >>
  3. Places where I can open an IRA Account?

    An individual retirement account can be opened through a range of major financial institutions, including brokerage firms ... Read Full Answer >>
  4. What does a merger or acquisition mean for the target company's employees?

    Suppose one sporting goods manufacturer merges with or acquires another sporting goods manufacturer. Before the merger and ... Read Full Answer >>
  5. What is the best reason to pursue a backward integration?

    Saving money on costs and improving efficiency are two good reasons to pursue backward integration. Backward integration ... Read Full Answer >>
  6. Is backward integration the same thing as vertical integration?

    Backward integration is a type of vertical integration, but they are not the same. Vertical integration is the process of ... Read Full Answer >>
Related Articles
  1. Retirement

    Track Your Retirement Money With These Apps

    Try these four mobile and online apps to stay on top of your retirement income – in brokerage accounts, IRAs, 401(k)s, even Social Security.
  2. Professionals

    Advisors: Don't Overlook Not-Yet-Rich Millennials

    Financial advisors looking to grow their practices should focus on potential high-net-worth millennials.
  3. Retirement

    Top 10 Mistakes To Avoid On Your IRA

    IRA rules are complicated. It's easy to make mistakes – and they can cost you big time.
  4. Retirement

    Converting A Traditional IRA To A Roth

    When is it a good idea to convert traditional IRA funds into Roth IRA funds? And when does it not make sense?
  5. Trading Strategies

    Top 7 Roth IRA Stocks for 2015

    Looking for stocks with long-term potential for your Roth IRA? Here are the top seven picks for 2015.
  6. Fundamental Analysis

    Explaining Enterprise Multiple

    The enterprise multiple is a ratio used to value a company as if it was going to be acquired.
  7. Retirement

    When Is It Better To Forgo A Roth Account?

    Depending on how much you're currently earning, a traditional IRA sometimes offers more tax relief than its Roth counterpart.
  8. Retirement

    Top 10 Mistakes To Avoid On Your 401(k)

    Funding and managing your 401(k) is critical to a financially healthy retirement. Avoid these top 10 mistakes.
  9. Professionals

    Your Clients and the Changing Retirement Landscape

    For many, retirement might not be the full stoppage of work and living a life of leisure but rather one of slowly phasing out of the workforce.
  10. Chart Advisor

    3 Basic Material Stocks Poised For A Pop

    After large market swings such as the one seen on March 30, 2015, it is not surprising to see traders become more tolerant towards taking on risk.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center