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It is a very strange rule, but, once the ball goes into the hole, it is deemed to be holed so the players pick it out. But, the reason they don't pull the flag out is because most pins have a ledge at the bottom where the ball touches, if they pull the flag out and the ball comes out, the ball is not holed, so they must putt it. There is no penalty, but they must play the ball where it lies. If you hit a shot, and the ball rests between the lip and the pin, it is not holed until it comes to rest at the bottom of the cup, therefore, either the player or someone nominated by the player (i.e caddy) may move the pin slightly, if the ball falls into the hole it is holed, if the ball comes out, it is not holed.

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Q: When players chip the ball in the cup or they get a hole in one why is it that they reach down into the cup to get the ball without taking the flag out is there a rule that says there is a penalty for?
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