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Level 1

1009-R Box 7 question

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

2 Replies
Expert Alumni

1009-R Box 7 question

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

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Level 15

1009-R Box 7 question

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).

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