@kejjp00
You should be OK, as long as:
a) you didn't actually have your pension monthly payments started until after you reached age 55, and
b) they code box 7 with a "2".
I did similarly retire early, after age 55, but before age 59.5, with a traditional pension plan. They coded box 7 with a "2" and TurboTax handled it just fine. One of the software follow-up questions asks if you received periodic payments from that account, and you just check the box for "Yes, I got regular payments from this retirement account." Thus...No penalty, just normal taxation.
(English majors may take issue with the word "got"....I recall an old grammar guidance that says it is "a weed that grows in sentences")
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The year I turned age 59.5, they (Fidelity NetBenefits handled it for my company pension), sent two 1099-R forms. One with just the before age 59.5 $$, with box 7 containing a code "2", and another 1099-R for the $$ received after I turned 59.5 and box 7 coded with a "7".
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
