After really looking at form 5329, it is on line L, which states "incorrect early distributions". It is also under a heading "Distributions Not Subject to Additional Tax Smart Worksheet". It is in "Column A, Non SIMPLE Distributions". I think you are right, there is no penalty. I don''t know why it came up this year unless it is because the form isn't available yet. I looked back at 2022 and the form isn't even listed in the 2022_File Name-Tax Return_Filing.pdf., although it is listed in the unfinished 2023 Filing .pdf. If it is required, TurboTax will include it. As long as it isn't subject to a penalty it is already taxed on my return.
It looks like I wasted a lot of people's time. Sorry. As far as I am concerned the question is answered.
Thanks again to all who replied.
