Distributions from IRAs (IRA/SEP/SIMPLE box marked on the Form 1099-R) are not eligible for this penalty exception. Only distributions from the qualified retirement plan like a 401(k) provided by the employer from which you separated in or after the year you reached age 55 qualify for this exception.
Normally the plan knows that you separated from service with the employer that provides the plan in or after the year you reached age 55 and they use code 2 instead of code 1 to indicate that the distribution is exempt from the penalty. Check with the plan administrator to be sure that they know your separation date and your date of birth.
Form 5329 is required to claim this exception with code 01 on line 2 if you qualify for the exception but the distribution was reported with code 1 instead of code 2.
