dmertz
Level 15

Retirement tax questions

Form 5329 claiming the code 09 exception on line 2 is all you need.

 

Regarding the Form 1099-R, code 1 is correct.  An IRA custodian has no way to know if you qualify for this exception so there is no code for indicating this on your Form 1099-R.  It's your responsibility to claim the first-home exception on your tax return if you qualify.