I have experienced the very same problem. 2018 Turbo Tax insists on treating a non-qualified annuity payment (with distribution code D: non-qualified annuity) as one that require a RMD. Then TurboTax completed form 5329 and reported the amount paid as an early distribution (for a 92 year old woman) not subject to the extra tax on early distributions using exception code 12 (other). This is the first year TurboTax has done this for the very same annuity. After extensive online research, I am confident that for a non-qualified annuity held outside a qualified plan there are NO Required Minimum Distributions at all and NO early distribution penalties after age 59.5. This looks like a programming error to me. I have been very confident in TurboTax for many years so this is a bit disappointing.
