1099-R, Box 7 has 2-NONDISABILITY, but the options in turbo tax do not match in the drop down menu, which has: 2 – Early distribution (except Roth), exception applies

The correct description for Form 1099-R, box 7 Code 2 is Early distribution, exception applies (under age 59½). Turbo Tax dropdown choices reflect what the code numbers mean.

If you see a 2 on your Form, your code is a 2. The added word "nondisability" is not a valid code. Ignore that.

See page 7 of the Form 1099-R instructions.

https://www.irs.gov/pub/irs-pdf/f1099r_16.pdf