Yes, you are correct you should not have to pay the 10% early withdrawal penalty (please see IRS Additional Tax on Early Distributions and Exceptions for details).
Please follow these steps to get the exceptions from the penalty:
- Login to your TurboTax Account
- Click on the "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter your 1099-R
- Click "continue" after all 1099-R are entered and answer all the questions.
- Continue until "Did you use your IRA to pay for any of these expenses?" screen (this screen won't come up if you only withdrew your contributions) and enter the amount under "Another reason".
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