Do I put yes I took the money out before age 59 1/2? It was 2 payments and then I turned 59 1/2 Feb. 2017.

[JulieH1]

Unfortunately, yes.

The exact date of the distribution matters.  Any distribution made before you actually reach age 59½ is an early distribution.  The payer should have provided the correct code in box 7 to indicate whether or not the distribution was an early distribution.

Note that if you separated from service with the company that provided this 401(k) in or after the year you reached age 55, you can use the age 55 penalty exception.  But again, the payer should know your termination date and should have used code 2 in box 7 if the age 55 exception applies.