If you turned 59.5 at any time during 2020.....That's a bug....
If you edit the 1099-R from the start again, you'll come to a question about whether you received any of the $$ before you reached age 59.5....and right now you have to say NO to the question about receiving any of it under age 59.5, in order for it to post properly in the 2020 software. There is also a separate selection about it being a nonqualified plan during that initial set of questions where you can say it is a non-qualified plan. I think answering NO to the any $$ received while under 59.5 avoids the second set of "Nonqualified annuity" questions.....and also eliminates the penalty....but like I said, that's a bug that's been reported...for a military retirement with code 7 in box 7 you shouldn't get the age 59.5 question at all.
........but the IRS isn't doing anything with any tax files before 12 Feb, so there is time for TTX to correct it . See the discussion here...when it was first identified:
https://ttlc.intuit.com/community/retirement/discussion/re-the-10-early-withdraw-rule-doesn-t-apply-...
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
