What code to use for early withdrawal from IRA for first home buyer if taxpayer eligible for non penalty withdraw ?
What code is in the box?
You still need to enter the amount for 1st time home buyer in Form 5329, line I to eliminate the penalty.
1 means early distribution, no exceptions to penalty. You need to enter the amount in Form 5329.
Enter the 1099R exactly as its shown, then go over to the 5329 and fill in the appropriate box.