Code 8 signifies that excess contributions were deposited and returned in the same year. Code J should be used if the Roth IRA owner meets the five-year waiting period but the distribution is not qualified because the IRA owner is not yet age 59½, has not died, or is not disabled. Since TurboTax is indicating no extra tax, it is detecting your age as over 59 1/2 so no penalty on 5329.
