Retirement tax questions

You can claim a Penalty Exception for an IRA withdrawal for Unreimbursed Medical Expenses. 

Click this link for more info on IRA Early Withdrawal Penalty Exceptions.

In TurboTax Online, after you enter your 1099-R (with a Code 1 in Box 7), you will come to a screen titled 'Let's see if we can reduce your early withdrawal penalty'. 

The next screen is 'These Situations May Lower Your Tax Bill' (screenshot).

Enter your Medical Expenses (equal to or greater than the amount of your withdrawal), whether you itemize or not on your return.  

This will create Form 5329 for you.  Save your medical bills in case you are asked for documentation.