Qualified Acquisition Cost

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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.

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RELATED FAQS
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    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. Are mutual funds considered retirement accounts?

    Unlike a 401(k) or Individual Retirement Account (IRA), mutual funds are not classified as retirement accounts. Employers ... Read Full Answer >>
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    Though some states protect IRA savings from garnishment of any kind, most states lift this exemption in cases where the account ... Read Full Answer >>
  4. Can I use my IRA savings to start my own savings?

    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>
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    Depending on the state where you live, your IRA may be garnished by a number of creditors. Unlike 401(k) plans or other qualified ... Read Full Answer >>
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    Individual retirement account, or IRA, growth depends on many factors, including what types of investments are included in ... Read Full Answer >>

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