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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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.
Which type of "pension plan" matters:
The person's age matters.
If it was from an IRA, you can exclude the penalty on the first 10K of the distribution using Form 5329.
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.
Thank You > It was a big help.
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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