Thank you, ThomasM125!
TurboTax (self-employed desktop version), under Learn More pop-up said:
"Note: Premature distributions do not qualify for this subtraction." There was a link to more info (https://tax.colorado.gov/sites/tax/files/2020.02_Income25.pdf), which I read several times and appeared that it was allowable if the penalty exception was allowable under Federal rules. Thank you again.
