This is happening to me too. I enter the 1099R with code 2 in box 7. I get a message that says I will not have to pay a penalty. Then it sends me to questions about what I did with the distribution. I was initially told I would owe a 25% penalty but after research I entered the entire distribution in the box for equal distribution payments (or something similar). That brought it down to 10%. Something is not working properly. Please answer this Turbotax. Or anyone with a solution please.
