Yes. Your early withdrawal qualifies for the Separation from service after age 55 and is exempt from the early withdrawal penalty of 10%.
Please read this TurboTax Help topic for more information.
In TurboTax, please follow these steps:
- After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
- Follow the interview until you arrive at the page titled These situations may lower your tax bill
- Enter the amount of the distribution in the box next to Separation From Service the Year After Age 55 and click Continue
- Your early withdrawal penalty will be waived.
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