dmertz
Level 15

Retirement tax questions

Yes, it should have code 7 instead of code 1.  They apparently do not have your birth date, so the used code 1 because they know you can claim an Other reason exception to the early-distribution penalty for being over age 59½.  When you claim an Other reason exception, it is reported on line 2 of Form 5329 with code 12.

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