I took money out of retirement plan to purchase a house, is it still charged an early withdrawal penalty? If not, how do I enter in the system so it doesn't?

[Coleen3]

There is an exemption for qualified first-time homebuyers, up to $10,000. This can only be from an IRA distribution, not a pension. If you took the money from your IRA, the screen shots below show you where to indicate the exception.