dmertz
Level 15

Retirement tax questions

The custodian has coded the Form 1099-R correctly with code 7 for distributions made after age 59½.

 

Code 2 and code 7 both mean that the distribution is not subject to an early-distribution penalty and TurboTax treats both as not being subject to any early-distribution penalty.  If you are seeing a penalty, it's for some other reason or you've entered something incorrectly.