> it says "good news, you dont owe anything for tax"
No, that's not what it says. Presumably because your Form 1099-R has code 2 in box 7, TurboTax says that you don't owe any "extra" tax, the extra tax being a 10% early distribution penalty. You still owe ordinary income tax on the distribution.
Is it additional tax for the 10% early withdrawal or showing the whole amount as non-taxable?
I am exempt from the 10 percent because I was federal law enforcement, but I don't believe I took anything out for income tax?
> it says "good news, you dont owe anything for tax"
No, that's not what it says. Presumably because your Form 1099-R has code 2 in box 7, TurboTax says that you don't owe any "extra" tax, the extra tax being a 10% early distribution penalty. You still owe ordinary income tax on the distribution.