How to change 1099-R form box 7 from a 1 to a 2?

Forum|Forum|4 years ago
February 8, 2022
2 replies
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I'm 50 yrs old and took a hardship withdrawal to purchase my primary residence which is an allowed exception. My 1099-R form has the wrong code in box 7. I looked into a 1096 form but need help.

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DoninGA

Level 15

There is an exception to the 10% early distribution penalty for a first time home purchase if the distribution was from an IRA and the amount was $10,000 or less. There is not an exception if the distribution was from a 401(k) account.

If this was for a first time home purchase and from an IRA then after completing the entry of the Form 1099-R you will come to a screen to select the exception to the penalty.

You cannot change the code in box 7 of the form on your own. If the code is incorrect then you would need a corrected Form 1099-R from the plan administrator.

klanders1Author

Level 2

I contacted Fidelity and they said only the IRS can change that code with validating documentation. I also read about form 1096 to submit but I need help.

ColeenD3

Level 15

You would not change the code. If you proceed with the interview in the 1099-R section, you will be asked if you qualify for an exception. The distribution must have been from an IRA, not an employer retirement plan.