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.

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