As it relates to a first time home buyer, is the date on which a binding contract to acquire the principal residence, or the date on which construction or reconstruction of such a principal residence is commenced.
A first-time homebuyer distribution used to buy, build or rebuild a principal residence that is a first-time home, is not subject to the early distribution penalty.
Additional Helpful Information
A principal residence may include a houseboat, a house trailer, or stock held by a tenant-stockholder in a cooperative housing corporation, if the dwelling which the taxpayer is entitled to occupy as such stockholder is used by him as his principal residence. Property used by the taxpayer as his principal residence does not include personal property such as a piece of furniture, a radio, etc., which, in accordance with the applicable local law, is not a fixture.