Being forced to upgrade to report an early distribution from an IRA is generally correct, but unfortunate because the distribution amount is so small. I suggest entering this Form 1099-R with code 2 instead of code 1. With no tax withholding in box 4, the details of the Form 1099-R will not be included in your e-filing, so the fact that you entered code 2 instead of code 1 will be transparent to the IRS.