monicac
Level 4
03-23-2021
04:58 PM
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I have a client that took a distribution from their 401K following under the Covid exception but the financial institution put code 1 which is early withdrawal with no known exception instead of code 2- early withdrawal with exception.
I filled out the Qualified Disaster distribution worksheet and it took care of it properly however is the IRS going to disallow it because the wrong code was used?
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