topic 1009-R Box 7 question in Deductions & credits

1009-R Box 7 question

goldsharks — Tue, 28 Jan 2020 03:33:08 GMT

I took money out from 401k to purchase my primary home, the code in box 7 have '1', is this should be '2'?

Re: 1009-R Box 7 question

AmyC — Tue, 28 Jan 2020 03:53:08 GMT

It should be a code 2. Contact the issuer and ask for a corrected form.

Re: 1009-R Box 7 question

dmertz — Tue, 28 Jan 2020 13:38:30 GMT

Unless you were age 55 or over in the year you separated from service from the company providing the 401(k), Code 1 is correct. Using a distributions from a 401(k) to buy a home does not qualify as an exception to the early-distribution penalty. That exception is only available for a distribution from an IRA for the purchase of a first home, not for a distribution from a 401(k).