Thank you for your comment dmertz. After inputting the 1099-R provided by the custodian, we are still being penalized 10%. What type of supporting documents can I provide the IRA to provide the sale was not finalized and we are indeed first time home buys? Additionally, do I pay the 10% now and when the 5498 is sent to the IRS by the custodian will I be reimbursed for that dollar value?
Thank you again for your input.
