I entered my 1099-R as a non-qualified plan, but was then forced to choose either Qualified retirement plan, Nonqualified annuity, or modified endowment contract. None of these match the correct selection as a non-qualified plan. I selected Qualified retirement plan, but it is adding a 10% early withdrawal penalty because I am under 59 1/2. This has not happened in previous years. How do I deal with this? I should not be paying an extra $3000 in taxes because turbotax thinks it is penalized. Military retirement is not penalized like that.
