Depends.
If the distribution is received before the calendar day that you turn 59 1/2 then yes, you are subject to the penalty, if received on or after that day then no, there is no penalty.
If you turn 59 1/2 during the year the TurboTax 1099-R interview will ask if taken before or after that date to access the penalty or not.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
