Your answer to the "Were you 59-1/2?" question won't affect how the distribution is taxed. Cash dividend distributions made by an ESOP are not subject to the 10% penalty for early distribution.
Technically, if the entire amount reported on the Form 1099-R was paid in March 2020, you would NOT have been 59-1/2 years at the time you received it. The 59-1/2 year rule for retirement plan distributions, however, is only used to determine if an early-distribution penalty applies; as stated earlier, cash dividend distributions made by an ESOP are not subject to a penalty for early distribution.
As long as the ESOP ("the Plan") pays the cash dividends, you will receive a Form 1099-R. If the company pays the cash dividends directly to you (not through the ESOP), then you will receive a Form 1099-DIV (per IRS Announcement 2008-56).
Reporting Requirements for Section 404(k) Dividends from ESOPs
