# IRA early distribution penalty waiver for fist time home buyer - purchases abroad



## Expat6756 (Oct 8, 2020)

Hello,

I have a question about the IRA early distribution penalty waiver for fist time home buyers. If you are buying outside of the US, and thinking of partially financing with an IRA withdrawal, would this penalty waiver rule apply to you for a home purchase abroad. The rule waives the 10% penalty for an IRA withdrawal of $10,000 provided you are a first-time home buyer, as I understand.

Thank you for any insight.


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## Moulard (Feb 3, 2017)

I don't really know a lot about this, but a quick read of s.72(t)(2)(F) of the IRC seems to suggest that the only factor related to the home itself is that it has to be your principal residence. I see nothing in the legislation that would lead me to think that the home has to be within the United States.


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## Expat6756 (Oct 8, 2020)

Thank you for taking a look and your response.


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