TurboTax uses the box 2a amount as the taxable amount of a code W Form 1099-R. The issuer of the code-W Form 1099-R should have put a zero in box 2a. However, the result seen by the OP suggests that a value of $321 was present in box 2a, resulting in the calculation of $32 of tax at a marginal tax rate of 10%.
The original answer to this question is misleading because TurboTax never calculates an early-distribution penalty on Form 5329 with regard to any code W Form 1099-R.
