I started withdrawing money from my pension when I retired at 69 1/2 but it says I took money out early. why

TurboTax goes by the code in box 7 of the Form 1099-R.  A code 1 included in box 7 indicates an early distribution and would be an erroneous coding by the payer since you are over age 59½.  For a distribution from a traditional pension plan to someone over age 59½, the code should be 7.

@mjsorendo 

UNLESS...unless you mistyped your age in 2023 as 69 1/2 when you meant 59 1/2 ?

IF so, you might need to edit that 1099-R.  IF 2023 was the year you turn 59.5, there is a follow-up question, several pages after the main 1099-R form, where the software actually asks if you were under or over 59.5 for the $$ taken out.  You need to select the one for after age 59.5  .  The software asks this even if the code in box 7 was a 7.