Thanks everyone for your suggestions. It appears that I encountered a bug in TTax. I had forgotten a life insurance policy that my parent's collected last year. Although not taxed, TTax does ask about life insurance when you apply for the homestead credit in Michigan. When I checked the life insurance box that is when this form 5329 showed up. I tried deleting the 1099-R that was associated with the amount. Form 5329 remained. I tried not applying for the homestead credit. Form 5329 remained. I tried unchecking the life insurance policy in the list of questions it asks - I could not uncheck it. I could check and uncheck every other option, but not this one. I took drastic measures. I deleted the TTax file and started all over again. I did not apply for the homestead credit at all, since I knew my parents no longer qualified. Then everything worked fine.
I used to be able to get hold of someone at TTax - usually they are interested in such things. But I only got an automated response. Anyway, the taxes are done and filed. Thanks for your help and suggestions.
