Who is responsible for coding most pre-59.5 exceptions to the IRS?

Answered by:

Question:

Do we have to code higher education, medical and first time homebuyer exceptions distributions prior to age 59.5 as a “premature-exception applies”

Answer:

No, the financial institution will code those as “premature – no exception, penalty applies”. The customer will take the exception by filing the IRS form 5329 with his/her tax return and putting the appropriate exception code when applicable.
-----------------------------
Learn more about Patrice’s webinar
IRA Advanced: Breaking Down the Complicated Issues