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Retirement tax questions
The question will only be asked if your Roth IRA distribution is subject to an early-distribution penalty because the distribution was more than your Roth IRA contribution basis. If the distribution consists entirely of money you contributed, is not taxable or subject to early-distribution penalty, so there is no need for o ask what you did with the money.
Be sure to click the Continue button on the Your 1099-R Entries page and answer the general IRA follow-up questions so that TurboTax calculates the correct taxable amount and, if a portion of the distribution is subject to an early distribution penalty, you can enter the amount or education expenses that will provide an exception to the early-distribution penalty (but you'll still own any income tax).
KasiaNora, if TurboTax is not generating any Form 5329 after you enter the code J Form 1099-R, it seems that the distribution does not include any amount that is subject to an early-distribution penalty. There is no need to apply a penalty exception to a nonexistent penalty.