Hi, I'm evaluating the use of my one-time $10,000 withdrawal from my
IRA for qualifed acquisition costs on a new construction property.

I see that the funds need to be used within 120 days from distribution.
I'll be using the money for my down payment and closing costs.

My question is will I face a penalty if I buy a new construction
building and it doesn't close within the 120 day period OR is the
earnest money deposit count as using the money? I'm afraid that it
would only count if the purchase is closed within 120 days. Anyone
that has bought a place that is still being built can testify about
delays! I'd hate to be slapped with a penalty when with good faith I'm
trying to follow the rules!

-Jim