How do you report the not taxable $10,000 a person gets from his/her retirement Plan to buy his/her first Home? I do have the 1099-R indicating the withdrawal, but there is not code indicating that the money was for purchasing first home which is allowed under retirement plans. I would like to know if this has be reported at all, or if there is any specific form which must be used in order to create a wash with the 1099-R amount....Any serious anser will be appreciated....
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Sounds like you're talking about the exclusion to the 10% penalty on early distribution. It's not an exclusion to the taxable income, but rather the 10% penalty on the early distribution. Still included in taxable income. It's available only for IRA distributions.
Reported on form 5329, reason code is 09.
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