If you are over age 59½, to eliminate the early-distribution penalty on the taxable earnings you must claim an "Other reason" exception to the penalty on this amount. This is one of the few and probably the most common of the "other reasons" that are acceptable. This is necessary because the IRS requires code J (early distribution) along with the code P regardless of age to indicate that the return of contribution is from Roth IRA.
To claim the exception, go to Other Tax Situations -> Additional Tax Payments -> Extra tax on early retirement withdrawals and enter the Form 1099-R box 2a amount in the box labeled "Another reason."
