Yes, help is available. The code 4 in box 7 represents the death of the original owner of the retirement plan. In this situation there is no 10% premature distribution penalty since it is the beneficiary who is taking a withdrawal.
It does not eliminate the personal income tax on the distribution. This would be the same situation if the original owner had taken $10,000 for a first time home purchase. The income is still taxable but without the penalty.
Please update here if you need further assistance.
@Jeannette3
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