Separated from employer at age 56, withdrew from 401K, so I should get the over 55 exemption. Box 7 on 1099R has code 1 but, code 1 in Turbo Tax assesses the penalty.

[ekully]

Note - if I put Code 2 into Turbo Tax, it eliminates the penalty, but doesn't match my 1099R

[DoninGA]

That sounds like the plan administrator for your 401(k) account has the incorrect date of birth for you.  Contact the plan and get a corrected Form 1099-R.

[Coleen3 · Accepted solution]

In TurboTax, you can indicate that you separated from service after age 55. As you progree through the interview screens, you would indicate this on the screen below. Click to enlarge.