What code to use for a qualified hurricane distribution?

If a participant takes a Qualified Hurricane Distribution, which distribution code must be used. Because the 10% penalty is waived for Qualified Hurricane Distributions, would it be Code 2 if the participant is under 59 1/2? 

Thank you.

code 2 is for exceptions so yes, i would think so

I don't think there is any formal guidance on this as of yet, but I would imagine a code 1. The participant will be limited to a $100,000 qualified plan aggregate distribution limit and there is no way for the plan sponsor to confirm the distributions from IRAs or other sources. If it is a code 1, generally there a corresponding exception code the participant would enter on their form 5329 prepared with their tax form claiming a penalty tax exception (similar to first time homebuyer from an IRA.)

We don't know for sure, as IRS has not issued any guidance yet on this issue. However, IRS Notice 2005-92 covered this stuff for Hurricane Katrina. Can use either Code 2 or Code 1 if under age 59 1/2 - depends on whether you accept the individual's representation that the hurricane distribution rule applies. Hurricane distribution recipients used Form 8915 to report the distribution and any subsequent repayments.