Since you were not age 59 1/2 or older when you withdrew the funds from the IRA there will be a 10% early withdrawal penalty assessed on the 2019 tax return. Purchasing life insurance is not an exemption from the penalty - https://www.irs.gov/taxtopics/tc557
To enter, edit or delete a form 1099-R -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
