Although you should have received separate code 2 (before age 59½) and code 7 (after age 59½) Forms 1099-R, code 2 and code 7 both indicate there is no early-distribution penalty. I don't think that TurboTax uses the answer to this question for anything and goes by the distribution code instead, but to make sure that TurboTax treats this as not subject to penalty, answer "No, I did not take the money out before age 59½."
