1099R box 7 code 1 - qualify for down payment

Forum|Forum|2 years ago
February 23, 2024
5 replies
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If I have a 1099R with Code 1 in Box 7 does this qualify for a down payment exclusion?

I would think if the funds were used for a down payment there would be a different code. Is there a different way to enter this to qualify for the penalty exclusion?

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Best answer by Skylane

Assuming you're talking about an exception on form 5329 for first home purchase, yes up to 10K.

Skylane

Answer

Intuit Community Champion

Assuming you're talking about an exception on form 5329 for first home purchase, yes up to 10K.

If at first you don’t succeed…..find a workaround

IRonMaN

Level 15

The investment company can't vouch for how the money is spent. If they qualify for an exception you would use form 5329

Slava Ukraini!

Just-Lisa-Now-

Intuit Community Champion

The financial institution doesn't care what you used it for.

If its an IRA you can exclude the first 10,000 from the penalty for early withdrawal if it was used for a first time home purchase, but its still taxable income.

If its a 401k, no penalty exclusion.

You use Form 5329 for the penalty exclusion.

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