Retirement tax questions

No, you do not owe the 10% penalty because your wife is at least 59 1/2 years of age when the nonqualified distribution was taken out. I mention her because you said the distribution came in only her name and social security number (SSN). As you complete your Form 1099-R you should see the following screens.  Make sure you enter the amount taken out after reaching the age.

• Search (upper right) for 1099r > click the Jump to... link continue to review your entry and look for the screens below.  
• Also double check the age and dates of birth under 'My Info' in the menu tree left