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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