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Level 7
March 4, 2022
Solved

First time home buyer

  • March 4, 2022
  • 3 replies
  • 32 views

My client took and early ditribution from a pension plan to buy his first home. Since the 1099r shows code 1 how do I show it so he does not have the ten percent early withdrwl penalty?

 

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Best answer by ehammondcpa

It goes on Form 5329. There should be a link on the 1099-R input page, but there isn’t. You need to enter it manually on the Form5339 under the first time homebuyer exemption. 

3 replies

qbteachmt
Level 15
March 4, 2022
Don't yell at us; we're volunteers
Just-Lisa-Now-
Intuit Community Champion
March 4, 2022

If it was from an IRA, you can exclude the penalty on the first 10K of the distribution using Form 5329.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 4
March 4, 2022

It goes on Form 5329. There should be a link on the 1099-R input page, but there isn’t. You need to enter it manually on the Form5339 under the first time homebuyer exemption. 

rcooley25Author
Level 7
March 4, 2022

Thank You > It was a big help.

qbteachmt
Level 15
March 5, 2022

I don't see where it was answered which type of plan this is.

401(k) doesn't have this provision; they pay the penalty if they are too young to make that distribution.

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