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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.
‎February 25, 2020
11:16 AM