As you go through the follow-up questions in TurboTax and you see the form where you would choose the exception to use in order to eliminate the early distribution penalty, enter your distribution amount in the box labeled 'Separation From Service the Year During or After Age 55...'
The TurboTax help content show below indicates that is the input to use for someone in your situation:
EXCEPTIONS TO EARLY DISTRIBUTION TAX
There are several reasons why an early distribution might not be subject to the 10% (or 25%) tax. Line 2 of Form 5329 is where you enter the amount of early distribution that's excepted from this tax.
Reasons include:
1. A distribution due to leaving your job in or after the year you reach age 55 (age 50 for qualified public safety employees and private sector firefighters). This exception doesn't apply to distributions from IRAs, annuities or modified endowment contracts. You are a qualified public safety employee if you provide police protection, firefighting services, or emergency medical services for a state or municipality, and you separated from service in or after the year you attained age 50.
Note: For distributions to qualified public safety employees, include distributions to employees with 25 years of service with the plan, distributions to firefighters covered by private sector retirement plans; and distributions to those employees who provide services as a corrections officer or as a forensic security employee providing for the care, custody, and control of forensic patients who meet the age requirement above.
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