I've done some more digging and I found a post that, coincidentally, came from you last May.
"Code M & L are almost the same - it means that money was taken from the retirement plan to pay the loan. Code M means that the reason was that you left employment with the company, and code L means that you defaulted on the loan but were still employed."
I was laid off from the company due to COVID so shouldn't my distribution code be M instead of L? If I change my 1099 in TT to M it does, in fact, remove the 10% penalty and allow me amortize the taxes.
