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There is no "payback" provision to return the removed funds to your IRA.


if you perform a "rollover" or "transfer" to yourself, you get 80% of the money, and if you can put the whole amount back within 90 days, there are no tax consequences. The only problem is you just loaned 20% of the money to Uncle Sam at 0% interest until you file your taxes.

Not even close. If you "rollover" an IRA to another IRA you get 100% of the funds and have only 60 days to return the money to the IRA. If you take a distribution from a 403(b) or other qualified plan, you only get 80%. However, most plans do not allow distributions unless you leave the job (though they may allow loans).

Nevertheless, none of this is relevant to the OP as it was clearly stated that the withdrawal was intended to fund the downpayment and the only question was how to document the use of the money so as to avoid the 10% premature withdrawal penalty.

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