I have a client who is in his early 50's and would like to withdrawal money out of the gov't 457 plan.  Researching the IRS site the 10% penalty doesn't apply.   How is this reported at tax time?  1099-R and if so what is the code in box 7?  Do I have to make adjustments on form 5329?

Any assistance would be appreciated, especially if you have come across this situation in the past.

Thanks

GC