This IRS Publication lists the Exceptions to the !0% Penalty on early distributions.
IRS Publication 590-B Page 24
First home
Even if you are under age 591/2, you don't have to pay the 10% additional tax on up to $10,000 of distributions you receive to buy, build, or rebuild a first home.
After you have entered the 1099-R, you come to the screen Let’s see if we can reduce your early withdrawal penalty, click Continue.
If you qualify for the distribution, the option will be listed at the screen These Situations May Lower Your Tax Bill.
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