How can I avoid the penalty for early withdrawal from my traditional IRA on the $10,000 I spent on my first house?

I bought my first house this year, and withdrew money out of my traditional IRA to do so. How can I avoid the penalty for early withdrawal on the first $10,000 I spent on my house? I am filing my taxes and want to make sure I don’t pay more than I have to.

IRAs, Real Estate, Taxes
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February 2018

As long as 1) you entered a binding contract with the seller or you began construction within 120 days of withdrawing the 10 thousand dollars from your traditional IRA, and 2) you did not previously own any home for two full years prior to that date, you will be okay.  Be sure to fill out Form 5329 when you do your federal income tax and fill out exception "09" on that form which is the exception for an IRA withdrawal to fund a "first-time" home purchase.

February 2018
February 2018