I am in the process of taking a distribution from my Roth IRA which I have had since 2005. I am under the age of 59 1/2. My understanding is that withdrawals of contributions can be made at any time without incurring the penalty and taxes. While doing the withdrawal the first question is, "Have you met the five-year waiting period?" To which I answer yes. The second question, is "Which selection describes your distribution?" Premature (under 59½ years old), Premature (with exception), or Disability. By answering Premature (under 59½ years old) is that going to cause a taxable event? I just want to proceed with caution and not incur the taxes or penalty.
If your Roth IRA is more than 5 years old, there is no tax or penalty when you withdraw up to the amounts you contributed to your Roth IRA, even if you are younger than 59 1/2.
The reason that the Roth IRA custodian asks these questions is to determine what code to put on the Form 1099-R. In this case you would answer would be "Premature (under 59½ years old)" so that the Form 1099-R will have a code J in box 7. (It's a bit odd that the custodian would be asking you to provide this information since they should have a record of your birth date from when you opened the IRA.)
The taxable amount is determined on your tax return. TurboTax will prepare Form 8606 Part III where it will subtract your contribution basis from the distribution amount and, if the amount distributed is less than your contribution basis, the taxable amount will be zero.