Qualified Acquisition Cost

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.

BREAKING DOWN '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. Functional Cost Analysis (FCA)

    A voluntary survey provided by the Federal Reserve Board outlining ...
  2. Disclosure Statement

    1. A document explaining the rules of an IRA in plain, nontechnical ...
  3. Revoked IRA

    An IRA holder may revoke an IRA within the 7 days after the IRA ...
  4. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  5. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  6. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
Related Articles
  1. Retirement

    SEP IRAs: Distributions

    By Denise Appleby Because the funding vehicle for an SEP is a Traditional IRA, the distributions rules of a Traditional IRA also apply to SEP assets.Traditional IRA Distributions. Distributions ...
  2. Retirement

    Roth IRAs: Distributions

    The tax treatment of a Roth IRA distributions depends on whether the distribution is qualified. Qualified distributions from Roth IRAs are tax and penalty free, but nonqualified distributions ...
  3. Retirement

    11 Things You May Not Know About Your IRA

    These little-known features will help you get the most out of your retirement savings.
  4. Retirement

    5 Secrets You Didn't Know About Traditional IRAs

    A traditional IRA gives you a current-year tax benefit and future years of tax savings – minus the income restrictions that limit who can have a Roth IRA.
  5. Retirement

    Roth IRA Vs. Traditional IRA

    Learn more about the differences between a Roth IRA and traditional IRA.
  6. Retirement

    Tax Treatment Of Roth IRA Distributions

    Learn the requirements for withdrawing funds tax and penalty free.
  7. Personal Finance

    5 Unusual IRA Investments Options

    These investment vehicles are less common, but could provide great returns while diversifying your retirement holdings.
  8. Retirement

    Roth IRAs: Conclusion

    Like the Traditional IRA, Roth IRAs are flexible, and they are a popular way for individuals to save for their retirement. Roth IRAs differ, however, because assets can grow on a tax-free basis. ...
  9. Retirement

    Avoiding IRS Penalties On Your IRA Assets

    The best way to avoid additional charges and taxes is to know which transactions have expensive consequences.
  10. Retirement

    How IRA Dividends Are Taxed

    Money in an IRA isn’t taxed until retirement, but its funds receive different tax treatment once money is withdrawn.
RELATED FAQS
  1. I want to take advantage of retirement savings. Can I contribute $6K to a Roth IRA, ...

  2. Should I set up a Roth IRA or a traditional IRA?

    I recently left my place of employment because I had moved out of state. At my place of employment we had a 401k plan. ... Read Answer >>
  3. Can I use $20K out of my IRA for our first house without the 10% penalty?

    If I have an IRA but my fiance doesn't, does that mean once we are married, I can use $20K out of the IRA for our first house ... Read Answer >>
  4. How do I roll over a Simple IRA to a Roth IRA?

  5. Are short and long dividends taxable before I take any disbursements from my simple ...

  6. Can I rollover a SIMPLE IRA to a Roth IRA tax free?

    I am currently employed and my SIMPLE IRA has been in place for about 15 years. Can it be  Read Answer >>
Hot Definitions
  1. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  2. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  4. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  5. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
  6. Real Rate Of Return

    The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other ...
Trading Center