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posted Apr 24, 2022 6:48:56 PM

How do I ensure my Fidelity IRA withdrawal for home purchase is listed as distribution type 2? Didn't see anywhere to put this withdrawal reason online

On Fidelity's online withdrawal tool I didn't find any way to note that this should be counted as an exception, neither in this form: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/customer-service/withdrawals-ira-one-time.pdf
I want to make sure it will be listed as type 2 so I'm not charged penalties for this early withdrawal. Thanks.

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1 Replies
Level 15
Apr 24, 2022 9:10:00 PM

Fidelity won’t know what you are using the money for and they can’t take your word for it in any case. Your distribution will be coded as 1, no known exception. When you file your tax return, you will certify that you qualify for the exception. The IRS has the option of auditing you, of course, and asking for proof, but most taxpayers are never audited.