topic Re: 1099-R in Retirement tax questions

1099-R

carm_11 — Tue, 24 Feb 2026 03:14:59 GMT

Hi,

I recently purchased a house and will be submitting a 1099-R with my taxes this year. I used the $5,000 I pulled out as part of my downpayment. My partner and I are not married and I will not be claiming the house on my taxes. Will this effect me being able to say what I used the money for? I also was wondering if I need to provide proof that I have $5,000 worth of contribution so I don't get taxed on it?

Re: 1099-R

PattiF — Sun, 12 Mar 2023 22:23:25 GMT

The 1099-R that shows the money that you took from your IRA, would have a Code 2 in Box 7. If your form does not show that code in Box 7, ask the financial institution for a corrected copy with Code 2 in Box 7.

Re: 1099-R

carm_11 — Sun, 12 Mar 2023 22:47:07 GMT

My financial institution is saying that they do not code the 1099 - R like this and that it is my job to show proof that the money was used for my home down payment.

Re: 1099-R

VolvoGirl — Sun, 12 Mar 2023 22:52:30 GMT

That's right, you just have to answer the questions. It won't show on the 1099R. What code is in box 7? And what kind of account did you take it out of? The exception for buying a house is only for IRA plans, not 401K or from retirement accounts at work. And it's only an exception to the 10% Early Withdrawal Penalty. You still will owe tax on it.

Re: 1099-R

carm_11 — Sun, 12 Mar 2023 23:00:51 GMT

It was pulled out of a Roth IRA and it is showing J. I was under the understanding that because it was for first time home buying the 10% would we waved and if I have proof of contribution of the $5,000 I would not be taxed on it either.

Re: 1099-R

VolvoGirl — Sun, 12 Mar 2023 23:00:46 GMT

J is ok. That's for a ROTH IRA. @dmertz

Re: 1099-R

dmertz — Mon, 13 Mar 2023 12:33:24 GMT

If your contribution basis in your Roth IRA is more than $5,000, the distribution is not taxable or subject to penalty no matter what you did with the money and there is no need to claim the first-time homebuyer exception. You would only need to apply the first-time homebuyer exception to avoid any earnings distributed from being subject to an early-distribution penalty and possibly from income tax. Earnings are distributed only after all of your contributions have been distributed.

Make sure that you click the Continue button on the page that lists the Forms 1099-R that you have entered and answer all of the additional questions that follow, in particular the one that asks for your Roth IRA contribution basis.