What is a nonqualified withdrawal from a first time homebuyer savings account?

Any withdrawal from a Maryland first-time homebuyer savings account for a purpose other than eligible costs for the purchase of a home in Maryland is considered a nonqualified withdrawal. You should report the total amount of nonqualified withdrawals.

Note: Any amount withdrawn by the account holders for the purpose of rolling over into another designated account or a withdrawal protected by a bankruptcy filing are considered exempt. Do not report these types of withdrawals.