First, double check that you chose the correct code for Box 7 on the 1099-R entry screen. For normal military retirement pay, Box 7 should have Code 7 - Normal Distribution. (If you entered an incorrect code, such as Code 1, TurboTax will think it was an early distribution.)
Military retirement is a non-qualified plan.
To get back to your 1099-R:
- Once in your return, type "1099-R" in the search box on the blue dashboard
- Click "Jump to 1099-R" link
- Click Edit next to your military retirement 1099-R.